Serial entrepreneurs raise more capital—but at what cost?
September 3, 2022
Andreessen Horowitz recently wrote its largest check ever, to the tune of $350 million, securing a significant position in a serial entrepreneur-led startup called Flow.
Acknowledging the ever-present investor need to mitigate as much risk as possible in various market conditions, we ask the question:
What factors contributed to the materialization of this deal?
Despite Adam Neumann's checkered history of generating strong returns, we believe he was able to leverage his reputable experience as a successful serial entrepreneur to garner new investment.
Raising capital is an incredibly arduous endeavor. For a startup founder, it's akin to baring one's soul.
One's initial intent to transform lives, industries, or societal inefficiencies is scrutinized down to the finest detail in an effort to expose return-damaging flaws and justify withholding investment.
Not only do investment due diligence processes finely comb through the startup's operations, but there is a pervasive emphasis on the entrepreneurial pedigree of founders.
That emphasis has allowed serial entrepreneur-led startups to leverage their experience and raise their first round of institutional capital seven to nine months ahead of their peers.
According to our data, a serial entrepreneur's experience not only streamlines the fundraising process but can generate deal sizes and pre-money valuations 2x-4x larger than their counterparts.
Our latest analyst note takes a closer look at the fundraising trends of successful serial entrepreneurs to quantify the level of influence entrepreneurial pedigree carries in the venture capital ecosystem.
Download the free research: Serial Entrepreneurs Raise More Capital, but at What Cost?
Feel free to reach out with any questions or feedback, or if you would like to discuss the research.
Acknowledging the ever-present investor need to mitigate as much risk as possible in various market conditions, we ask the question:
What factors contributed to the materialization of this deal?
Despite Adam Neumann's checkered history of generating strong returns, we believe he was able to leverage his reputable experience as a successful serial entrepreneur to garner new investment.
Raising capital is an incredibly arduous endeavor. For a startup founder, it's akin to baring one's soul.
One's initial intent to transform lives, industries, or societal inefficiencies is scrutinized down to the finest detail in an effort to expose return-damaging flaws and justify withholding investment.
Not only do investment due diligence processes finely comb through the startup's operations, but there is a pervasive emphasis on the entrepreneurial pedigree of founders.
That emphasis has allowed serial entrepreneur-led startups to leverage their experience and raise their first round of institutional capital seven to nine months ahead of their peers.
According to our data, a serial entrepreneur's experience not only streamlines the fundraising process but can generate deal sizes and pre-money valuations 2x-4x larger than their counterparts.
Our latest analyst note takes a closer look at the fundraising trends of successful serial entrepreneurs to quantify the level of influence entrepreneurial pedigree carries in the venture capital ecosystem.
Download the free research: Serial Entrepreneurs Raise More Capital, but at What Cost?
Feel free to reach out with any questions or feedback, or if you would like to discuss the research.
Max Navas
Analyst, Venture Capital
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