Dale Dietrich
friedman: always supply your comparative advantage
Random header image... Refresh for more!

A New Trend in Venture Funding – Segmenting by Startup Stage

Categories: businessventure capital
Tags:

This Week in Venture Capital–Episode 7–Dana Settle

  

I was listening to the above Episode 7 of the ‘This Week in Venture Capital’ podcast today, where Mark Suster interviews Dana Settle, a partner with Greycroft Partners.  See podcast summary here.

At the 8:35 minute mark, Mark and Dana discuss a new venture capital market segmenting trend where different funds are available to startups /ventures at different stages of their growth cycle. In this way VC’s can better focus on the different issues that affect startups at various stages.

I found this intriguing. I summarize the segments they discussed below:

Note: [CB] references below link to more info from CrunchBase on the applicable fund and its recent financings.

Super Angel / Seed Funds

Early Stage Funds

  • Smaller than traditional VC
  • Funds with $50 to $125 million in capital
  • Write cheques from $750K to $1 million
  • They like to see a product launch with first cracks at revenue generation to prove the idea can be monetized
  • Representative Firms: First Round Capital [CB], Greycroft Partners [CB], True Ventures [CB]

A Round Funds

B Round Funds (Traditional Growth/Equity Firms)

Growth Equity Funds
(not discussed in podcast but mentioned in the podcast summary)

Of course few venture funds fall absolutely in any one of the above categories.

Digg! Digg Del.icio.us