Emergent Ventures Targets 22 to 25 Investments From $76M Seed Fund
Anupam Rastogi · Behind The Term Sheet: How this $76m Seed Stage Fund Really Works · Sep 22, 2023 · at 2:09
Emergent Ventures GP Anupam Rastogi explains the portfolio construction, fund size, and deployment pacing of their seed fund to Nathan Latka.
0:00 / 0:30exact quote · 30.7s
720p mp4 · rendered on demand · StarZero watermark
“Yeah, we are investing out of a seventy-six million dollar core seed fund, and we would do about 22 to 25 investments per fund, and we do a fairly concentrated approach to seed investing, and there's two of us general partners, and we invest the fund over, you know, three to five years, so that means that we only invest in two to three deals per partner per year, which enables us to focus on the ones that we've invested in, Hilt and Get to the next milestones.”
quote is from the automated transcript, cleaned for reading: filler sounds and stutters are removed, nothing is rephrased. names can be misheard (the analysis reads context, assessments check outside sources). how →
More from Anupam Rastogi
Anupam Rastogi: Most SaaS Should Be Built Without Venture Capital
“Venture capital is not, For everyone, I'd say, in fact, for a very small percentage of founders and companies, I'd say a lot of SaaS can be built without venture capital and should be built without venture capital.”
Rastogi: Seed Fundraising Has Deconstructed Into Multiple Bridge and Extension Rounds
“Seed has gotten deconstructed. So the, I'd say it's very rarely the case that a company just does one seed round and then, Go straight to series A. I mean, that of course does happen quite a lot, but in many other cases, the company ends up doing a seed to or …”
Legal Fees for a $3M Priced Seed Round Average $20K-$25K
“I'd say for three million dollar round I would have seen everything from, you know, for a price on, you know, 10 K to 50 K. It's a pretty wide range. I'd say somewhere in the 20, 25 K seems to be median.”
Emergent Ventures Targets Sub-$20M Post-Money Valuations for Seed Deals
“I'd say, yeah, we try and stay, depending on the stage and type of company, we try and stay in that between, 20 post range under that. But yeah, we have, you know, venture is a game of exceptions. So we do have, we see an exceptional founder, exceptional team,…”
Fund Longevity Matters Far More to Founders Than LP Composition
“I don't know if that has a very meaningful impact on the founder directly. The, what could matter to founders is the fund being around and being prominent over time or not.”
Emergent Ventures Maintains Steady Pace of Five to Seven Deals Annually
“I'd say we've been at pretty constant five, six, seven deals per year throughout this fund. And that's what we have done in the last six months, we've done three deals as well. And last year we did six deals. So we've been right on pace and 20, 21 was about th…”