Boldstart Ventures has two new funds to connect with teams that have an idea and nothing more

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Baldstart Venturesthe seed and early-stage venture capital firm that bills itself as a “first-day partner for developers, crypto-infrastructure and SaaS founders” closed two new funds about 14 months after announcing its last two funds.

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The firm, which started in New York with a $1 million proof-of-concept fund in 2010, closed its sixth flagship fund with $192.2 million, as reported today; it also closed its third Opportunity-style fund to support its breakaways with $175 million in capital commitments.

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Early last year, Boldstart closed a $155 million capital commitment for its fifth flagship fund and $75 million for its second Opportunity Fund, so its newest, later-stage facility is a big step forward in particular. It also comes at an auspicious time, given that some of the industry’s most active late-stage investors, including SoftBank and Tiger Global, are currently writing fewer and fewer checks. (The less competition in late-stage deals, the less foamy the terms of the deal are, and the more time is spent on due diligence, and so on.)

Otherwise, little has changed, except for the move of co-founder Ed Sim to Miami, which is remarkable given Boldstart’s early focus on the region, including a focus on New York as well as underfunded Canadian talent. (Firm remains active in the north.) The firm will still write checks up to $250,000, it says; he is also willing to invest up to $30 million in one portfolio company.

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Some of its most famous deals to date include Snyk, a company that helps developers use open source and stay safe, and whose valuation last fall reached $8.5 billion; Blockdaemon, a blockchain infrastructure company valued at $3.25 billion earlier this year; and BigID data analysis platform costing $1.25 billion by their investors last year. Boldstart was also an early investor in Kustomer, a startup specializing in customer service platforms and chatbots that Facebook acquired in November 2020 for $1 billion.

Last week, Sim and I spoke about the markets, which, according to him, “suck” right now. At the same time, he added: “I really think that things [had grown] too frothy.”

He told us that among the new developments he has seen, condition tables are being pulled out, especially in the later stages. He said he also saw the terms of the two-time liquidation benefit included in the significant round, meaning that investors demanded that in exchange for their funding they be guaranteed double the amount of their invested capital in the exit scenario — before anyone still pay.

Like many venture capitalists, Boldstart is also actively advising its startups to save money so they don’t have to agree to terms that could harm them in the future. “The founders may be shocked when they see this because, on the one hand, [they’re thinking], “I raised the money. I kept my score,” Sims said. “The reality is that maintaining your valuation is not so good if you opt for dual liquidation preference. [to do it]”. If you do that, “under certain scenarios,” he continues, “you won’t make a dime.”


Credit: techcrunch.com /

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