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They do a ton of small investments (hence the name) all over the world, via both an accelerator and a seed fund. Differences: * Their site says they've funded
by austenallred 12y ago
They do a ton of small investments (hence the name) all over the world, via both an accelerator and a seed fund.
Differences:
* Their site says they've funded over 800 companies, which is absolutely absurd in the few short years they've been around. A lot of venture funds won't do that many deals in their entire lifetime, let alone in a few years.
* They do a lot of International deals (in 40+ countries). Most other VC funds are skeptical of (and often avoid) investments outside of Silicon Valley, let alone outside the United States.
* My own interpretation is that 500 Startups also focuses on things that generate revenue quickly, and not so much trying to find the next Facebook.
* And then there's Dave McClure. If you know who he is, this bullet point needs no explanation.
- crdb 12y agoDon't forget: they're "almost always" not the lead investor. They specifically will only look at companies with an existing investor. When I asked, Khailee Ng told me they used that as a filter (presumably instead of "only warm intros" and/or associates binning thousands of cold pitches). I thought it was a neat idea, especially since the industry does this unofficially anyway (http://paulgraham.com/fr.html http://paulgraham.com/fr.html - "Avoid investors who don't lead" - obviously 500 Startups is an exception thanks to their brand and network).