Today, with the help of venture capital funds, entrepreneurs can quickly turn their ideas into reality. Indeed, these investment funds actively seek startups whose innovation can be disruptive in today’s highly competitive digital market.

Thus, they provide sufficient funds for young companies with high potential and allow them to develop rapidly. With this strategy of financial investment, certainly at high risk, in the event of success or resale of one of the companies in their portfolio, they have a significant return on investment.

First Capital Round is therefore one of these investment funds and above all the most active venture capital in the technology sector. We tell you more in this article.

First Round Capital, how Does It Work?

First round, is a finance company founded in 2004 in the United States. This investment fund quickly made a name for itself in venture capital, spotting French Email List innovative future companies like Uber, Square, LinkedIn and Blue Apron very early on.

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A key factor in First Round’s success is their post-investment support system through which the founders of funded startups are regularly assisted by fund associates. The aid generally concerns the recruitment of new talents, the implementation of growth strategies for the startup and privileged access to contacts.

Sectors in which First Round invests
Initially, the majority of First Round Capital’s investments focused on any innovation in the web sector. But their overall portfolio has diversified over the years into healthcare, e-commerce innovation and consumer products. Their portfolio also contains service or e-commerce companies that always strive to be as disruptive as possible.

In the area of ​​SaaS, most of the companies in which the fund has invested in their 16 years of existence focus on advertising, finance and also any innovation in the field of business intelligence. As for the field of e-commerce, First Capital Round tends to mainly tend to invest in startups in the clothing sector.

The criteria required by First Capital Round before investing
According to the company, the most important criteria before it offers Series A funding and offers its services is none other than the innovation brought by the startup. Then there are the strengths of the founder (s). Indeed, the founding team must be made up of ingenious leaders who know how to think outside the box.

First Round Capital Investment Strategy

The strategy of First Round Capital is to find and finance several companies as soon as they are created. It emphasizes the seed stage so as to shape and build the business on a good foundation, and then bring in additional funds as the business grows. Note that this venture capital fund does not grant financing to a company that has already passed the seed stage such as a series B. This venture capital company favors startups just in the creation phase, of where its name “First Round”.

Josh Kopelman, co-founder of First Round, argues that the best thing investors can do is participate in this venture capital ecosystem: “start a business, join a start-up, and gain the knowledge and experience to provide a real value beyond just writing checks ”. He also believes that an investor’s goal should be to help their founders enter new markets, which can involve taking personal risks and going against preconceived models.

Amount of investments made by First Round Capital
First Round typically keeps the average size of many of its investments below $ 20 million. It also participates in larger round tables which considerably increase the average volume of sums committed to venture capital in which it participates.

Here Are Some of First Round Capital’s More Notable Recent Transactions:

• For advanced Wi-Fi system maker Eero, First Round participated in a $ 50 million Series B funding round, just five quarters after its initial investment and seed.

• Large medical data and services company Clover Health, First Round participated in a new Series C funding round of $ 165 million. This is the most important cycle in which a venture capital firm has participated so far in the last 5 years.

• Database company, MemSQL raised $ 36 million in a Series C during 2016. It was First Round’s fourth funding for the company since its initial investment in 2011.

• Nomad Health is part of the hospital staff market. During 2016, First Round and RRE Venture led the first round of funding of $ 4 million with the participation of 406 Venture, another venture capital firm.

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