Silicon Valley Growth Syndicate (SVGS) Invests in 60th Tech Startup
Angel investing fund hits funding milestone with Anedot, notable investments include Product Hunt and Sprig
MENLO PARK, Calif. – Silicon Valley Growth Syndicate (SVGS), an angel investing fund, today announced it has made its 60th tech startup investment as it wraps up 2015. The fund has invested in several notable startups including Product Hunt, Cargo Chief, and Sprig.
The fund has worked hard to balance its portfolio between Silicon Valley and non-Silicon Valley enterprises. “Valuations got frothy in the Bay area,” says L.W. McNutt, co-founder of SVGS. “We were already invested in some of the best pre-forming startups from Silicon Valley, and we started working hard on reasonably priced opportunities in the Dallas/Fort Worth area, Louisiana, Tennessee and areas outside the United States over the last three years.”
Founded in 2013 by Will Bunker, Russell Lewis, and L.W. McNutt, SVGS invests in early stage companies with revenue. It is comprised of a team of 44 investors and mentors that “Coach Up” startups to prepare for future growth and additional rounds of funding. SVGS has exceeded expectations with its portfolio breadth, increased the value of its portfolio companies, and achieved quarter-over-quarter sales gains.
Its 60th investment is Anedot, the easiest way to collect donations and payments for political campaigns, non-profits, churches, synagogues, causes and individuals in need. Based in Baton Rouge, La., Anedot’s platform has been used by hundreds of campaigns ranging from Presidential Candidate Carly Fiorina to several Gubernatorial, U.S. Senate and statewide political races.
Anedot has become the most used platform by Republicans in the United States Congress and Senate. “We have every reason to believe this will continue not only in the political sector, but moving forward also in the religious and education sectors.” Said L.W. McNutt.
“Louisiana is fertile ground for startups with top notch angel investing chapters in New Orleans and Shreveport, as well as the local area’s innovative accelerator programs and national universities to help grow the startup community,“ said McNutt.
Silicon Valley is home to 37 of the 60 companies, with others coming from Nashville (1), Dallas (5), Little Rock (1), Louisiana (1) Brazil (1), Ireland (1), England (1), Cincinnati (1), New York City (2), Australia (2), San Diego / other Non-Silicon Valley cities in California (5), Denver (1) and Mississippi (1). The fund has found many advantages investing in cities such as Little Rock, Dallas and Nashville.
Highlights of the SVGS portfolio include:
- 61 percent business-to-consumer and 39 percent business-to-business companies.
- Product Hunt, a curation of the best new products, has seen hockey stick growth and increased its valuation six-fold since SVGS invested.
- Dallas-based investments include beGlammed, Robin Lawncare Technologies, Culture Map, Blownaway and Modern Message, all of which are having record years. Modern Message, creator of Community Rewards for apartment complexes, started 2015 doing loyalty programs for 350 apartment complexes and is now working with more than 1,000 apartment complexes.
- Sprig, a food delivery service that cooks and delivers healthy, inexpensive meals to your office or home, has seen its investment value soar from $8 million to $268 million. It also expanded to Chicago this year from San Francisco.
- 2RedBeans, the leading dating site for Chinese living in North America, raised money at a valuation of $16 million dollars. SVG aided their launch in the UK. Top line sales tripled from 2013 to 2014.
- Cargo Chief, using patent pending technology to connect truckers and shippers with their giant carrier network, achieved sales in excess of a million dollars in 2014. In 2015, sales averaged more than a million dollars monthly.
- BuildFire, the easiest App building and management system available, drives revenue consistently above $60,000 per month and has grown 3X since 2014.
- VSporto, personalized sports radio on a college by college basis, expanded this year to 21 universities, including LSU, Alabama, Ohio State, Wisconsin, University of California, Stanford, Notre Dame, Auburn, Texas, Oklahoma, Georgia, Michigan and Penn State.
- A number of the companies like Hint Health are growing 100 percent per month.
“Lean In”Investment Strategy
SVGS practices a unique investing style in several respects. First, its lean in-style believes the best due diligence is accomplished from the inside out.
“We learn as much from an initial $25,000 to $50,000 investment as others learn from investing ten times as much,” said Co-Founder Russell Lewis. “We like to have our initial capital used to see if a marketing program is currently in use and if it can scale. If it does, we stand ready to invest up to $250,000 in any one opportunity.”
Second, SVGS only invests in companies with revenue. “The world is full of well meaning entrepreneurs who fail to launch,” says McNutt. “Getting the right product market fit, and being the last money into an angel round have served us well as we built the portfolio from scratch.”
Third, SVGS never loses sight of the aspirations of its investors. “We are forever conscious of the fact that our active investment partners are entrusting us with money and a dream. That dream is to participate in the early stages of great American companies, to grow with them and reap the ample rewards. These are the kinds of companies that, if successful, can assure success for another generation of a family,” says Co-Founder Will Bunker.
For more information about the Silicon Valley Growth Syndicate (SVGS), visit http://siliconvalleygrowth.com.
About Silicon Valley Growth Syndicate (SVGS)
SVGS is an investor partnership providing early-stage capital to entrepreneurs with developed business plans, complete products and most importantly, revenue derived from the marketplace. Investments are focused in areas of expertise that include: consumer eCommerce, SaaS enterprise, mobile, social, transactions/commerce business, subscription models, niche markets, lead generation business, dating, business-to-business solutions, and cross-border opportunities. For more information, visit http://siliconvalleygrowth.com or call L.W. McNutt at 214-537-9311 for quotes on 2015 and the tech startup scene nationwide.