Bullpen Capital thinks there’s a lot of need and opportunity investing in the second round of financing after a seed investment, what Union Square Ventures Managing Partner Fred Wilson recently called “the mess.” The new fund is looking to give start-ups the additional support they need as they move from seed round to more traditional funding.
The idea is to make follow-on investments for companies that were often initially founded with seed investments from super angels. The new money allows founders to keep operating without having to decide whether to take larger venture capital investments and the larger expectations they come with. Instead, they can continue to work out their business models and sort out their exit options with the additional funding. It can be an ugly time, Wilson wrote on his blog, as adolescent companies that have built a company are still trying to build a business. And it’s tough for VCs to figure out who needs the extra oomph. But it’s a glaring need, one that Bullpen hopes to address.
To read the full, original article click on this link: Bullpen Capital’s New Fund Will Rise Above the Angels: Tech News and Analysis «
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