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The investment logic for investing in startups by venture capital fund General Partners. Learn what GPs shared with Limited Partners to close their fund.
MoneyBall for Startups: Invest BEFORE Product/Market Fit, Double-Down AFTER.
Sub-brand fund for Israel, they have a typically generalized region/stage focus approach to investing.
1839 say they have a thematic focus but they invest in pretty much anything.
a16z have sort of an investment thesis, but you have to read it all to try guess what it is.
Allied Venture have 6 factors they look for but are unsurprisining "tech" focused
APF are focused on agriculture and food technology companies.
Alven invest in a relatively broad category of startups, but have 3 categories they are focused on.
Bedrock Capital was founded in 2018. AUM is $2b. They invest in USA.
Bowery is focused on "internet native". They don't really have a thesis.
Building Ventures are focused on building stuff, what they call "Constructuring".
Building Ventures are focused on space as a service
Calm Fund are focused on “funding for bootstrappers”. They invest through a Shared Earnings Agreement.
Cento invest in Southeast Asia startups looking for a Series A investor writing a $1-2m check in industries needing digital tranformation.
Daphni explain what they do and how they execute in Europe rather than being more thematic in focus.
Deep Space Ventures invests in seed and series-A stage startups primarily in the Esports and B2B spaces.
Draper Cygnus are focused on LATAM, US, and Israel through Pre Seed to Series A that do deep tech and decentralization.
Early Game are focused on Eastern Europe startups with the need for infrastructure innovation.
Earlybird have a European focus and have targeted 9 categories of startups
Escala are focused on the under-capitalisation of LATAM. It's based on middle-class is getting larger so let's do stuff.
Eximius Ventures is an early-stage venture capital fund in India. This is a thesis on AI Agents
ExSight invest in startups that focus in eyes.
Thematic investment thesis from Homebrew. It is centered on the concept of the "Bottom Up Economy."
Iceland Vantures are focused on personal data, privacy, sustainability and security startups in Iceland.
InnoCells invest in companies that operate in areas related to Sabadell Group’s core business
Kima invest in a lot of startups and very early. Follow on isn't a focus. This is their approach to investing.
Mammoth Scientific is focused on life science and bio tech companies.
Maven invest in startups with network effects
NextView have a thematic focus on Home, Food, Work & Money, Entertainment and Apparel.
Notation capital invest small dollar amounts in extremely early technical founders or founding teams in New York
OpenOcean are focused on “investments in Delicious data-intensive software.”
Placeholder are East Coast focused on decentralized information networks
Point Nine have a focus on SaaS, but also cover marketplaces and will be opportunistic. They're trying to get to no faster.
Savannah are focused on the gap of funding in the market of East Africa. They have a generalised view.
Underscore are focused on trusted cloud intelligence and technology sector which they term “Everything as a Service”.
The four USV investment thesis’ shared from 2012 to 2021 to guide their investment decisions. They are thematic focused.
A VC investment thesis is a strategic framework that venture capital firms use to guide their investment decisions. It includes the firm’s investment philosophy, targeted sectors, key criteria for evaluating startups, and expected outcomes. This helps in aligning investments with the firm’s long-term goals and ensuring a systematic approach to venture capital funding.
Creating a VC investment thesis involves defining your investment objectives, conducting thorough market and industry analysis, identifying target sectors, establishing specific investment criteria, and outlining a clear exit strategy. Data-driven insights and market trends play a critical role in shaping a robust thesis.
A VC investment thesis is crucial because it provides a structured approach to identifying and evaluating investment opportunities, reduces investment risks, and aligns the firm’s investments with its strategic vision. It also enhances transparency with limited partners and aids in attracting potential investors by clearly articulating the firm’s investment strategy.
Key components of an investment thesis include market analysis, identification of target sectors, investment criteria, competitive landscape assessment, growth potential analysis, and exit strategy planning. These components help in systematically evaluating investment opportunities and making informed decisions.
A VC investment thesis should be reviewed and updated at least annually or whenever significant changes occur in the market or industry landscape. Regular updates ensure the thesis remains relevant and effective in guiding investment decisions.
Common mistakes include a lack of focus, inadequate market research, unrealistic growth assumptions, failure to adapt to changing market conditions, and overlooking potential risks. To avoid these, ensure thorough research, realistic assumptions, and regular updates to the thesis.
A VC investment thesis focuses on a venture capital firm’s strategy for selecting and investing in startups, while a business plan details a startup’s strategy for growth and operations. Both documents are essential but serve different purposes in the investment ecosystem.
Yes, a well-structured VC investment thesis can significantly influence startup success by guiding VCs to invest in high-potential startups and providing them with the necessary resources, strategic guidance, and support. This alignment enhances the likelihood of successful outcomes for both the investors and the startups.
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