New York Office
54 W. 21st St #1001
New York, NY 10010
54 W. 21st St #1001
New York, NY 10010
Cambridge Office
1 Mifflin Place
Cambridge, MA 02138
1 Mifflin Place
Cambridge, MA 02138
© Founder Collective 2010
Our strategy: A new (old) model for venture investing
As venture capital funds get increasingly large, we have created a small fund (~$40M) that is dedicated to investing in seed stage deals.
Unlike big venture capital firms, we expect to generate returns almost exclusively from seed stage investments. Hence, we have the same incentives as founders to increase the value of the company in future financings. We are also comfortable with smaller exits if that's what the founders want.
A significant portion of our fund comes from active entrepreneurs, many of whom have made Founder Collective their sole entity for private company investing. When we invest in your company, you get access to and help from these entrepreneurs.
We think there is a particular need for this on the East Coast of the US, where we are based. We think the East Coast is poised for a technology revival and we hope to be part of it.
None of us have ever been bankers. We like products and building stuff. We show up on time and don't email during meetings.
Think of it as peer-to-peer investing.
In what industries/sectors will you invest?
We are industry agnostic. Some of our best investments (and our own startups) have been in extremely untrendy areas. We prefer companies that have an information technology component.
At what stage of a company's life do you invest?
A person or two and an idea is our favorite stage.
What do you guys know about starting companies?
As startup founders, we have collectively raised dozens of rounds of venture capital. We have sold our own companies for a combined value of over a billion dollars. Four of us are currently running startups as our full time jobs.
What do you guys know about investing in companies?
In the last six years, we've personally invested over $20m in 31 companies, yielding an Internal Rate of Return (IRR) of over 75%, the majority of which is realized.
A large VC is offering me money as part of their seed program. Why should I prefer a dedicated seed fund like Founder Collective?
See this blog post.