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First Round Capital 10 Year Project


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So... don't get a referral to First Round. Let them discover you through Twitter?

Actually, I like point #1: Female Founders Outperform Their Male Peers.

We’ve been fortunate to back many companies with female founders (and women-founded companies represent a greater percentage of our investments than the national VC average). That’s why were so excited to learn that our investments in companies with at least one female founder were meaningfully outperforming our investments in all-male teams. Indeed, companies with a female founder performed 63% better than our investments with all-male founding teams. And, if you look at First Round's top 10 investments of all time based on value created for investors, three of those teams have at least one female founder — far outpacing the percentage of female tech founders in general.

female founders outperform by 63% first round

Yes, there's a couple things I like and a couple of things I don't. 

What do you like?

- Five -Investors Pay More for Repeat FoundersWhile entrepreneurial experience is obviously valuable at the seed stage, we were surprised to see that our investments in repeat founders didn't perform significantly better than our investments in first-timers — mainly because successful repeat founders’ initial valuations tended to be over 50% higher. It’s interesting to see how the market effectively prices repeat founders higher because they are known quantities.

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- Eight -You Can Win Outside the Big Tech HubsWe thought location might make an equally dramatic difference, but we were wrong. First Round companies founded outside New York and the Bay Area are performing just as well as their peers based in those epicenters. Of the 200 companies we looked at for this, 25% landed outside these cities and, on average, have performed a slim 1.3% better than companies in the Bay and NYC. Again, this could be because investors price companies in NY and SF meaningfully higher to start with — but it’s heartening nonetheless.

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So... be a repeat founder, and be outside New York and the Bay Area. Got it.

Make sure you have some affiliation with Caltech or Stanford.  Also, if you have an enterprise business, a co-founder helps.  If you have an consumer one, you might not necessarily need one....

Good points. Okay so what don't you like?

Well,that fortune favors the young.  There's a whole underclass of young, dumb, and naive or young, dumb, and bullheaded entrepreneurs that never even make it to the point to talking to someone like FirstRound.  I've met hundreds of these companies and/or individuals.   They think the idea is everything, they don't understand the competition, they think technical approaches that don't mean anything to customers are huge differentiators, they don't know how to execute, and they don't even know who might actually pay for anything they build.  

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I'm also sad UCI isn't included as the "right type of University".  

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Yeah I think you're right that University of California should be included in the schools that matter.

And I'm also skeptical of youth because they don't know what they don't know.

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