Silicon Valley Growth Syndicate (SVGS) Invests in 50th Tech Startup
Angel investing fund hits funding milestone with BuildFire, notable investments include Product Hunt and Sprig
Silicon Valley Growth Syndicate (SVGS), an angel investing fund, today announced its has made its 50th tech startup investment. The fund has invested in several notable startups including Product Hunt and Sprig
The fund has worked hard to balance its portfolio between Silicon Valley and non-Silicon Valley enterprises. "This gives us the best of both worlds," says LW McNutt. "We have some of the best pre-forming startups from the Bay area, combined with reasonably priced opportunities across the United States and around the world.
Founded in October of 2013 by Will Bunker, Russell Lewis, and Lee McNutt, SVGS invests in early stage companies with revenue. It is comprised of a team of investors and advisors that Coach Up the startups to prepare for future growth and additional rounds of funding. SVGS has exceed expectations in terms of the breadth of the portfolio, increase in the value of the companies, and climbing quarter over quarter sales gains.
The 50th investment is BuildFire , the easiest App building and management system available. Based in Newport Beach, Calif., BuildFire’s intuitive click and edit platform has found favor with digital ad agencies and small businesses.
We met SVG at the Consumer Electronics show and were impressed at the willingness of all three of their founders to share their experience, network and marketing ability with us, says Co-Founder IanBlair.
Silicon Valley is home to 28 of the 50 companies, with the others coming from Nashville (1), Dallas (5), Little Rock (1), Brazil (1), Ireland (1), England (1), Cincinnati (1) , New York City (2), Australia (2), California, non-Silicon Valley (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:
Total investment by SVGS is $4 million across the 50 companies. 19 B2B and 31 B2C.
The initial total valuation of all companies in the portfolio at the time of investment was $250,150,000. Total valuation of all companies as of May 8, 2015 was $565,650,000. All valuations are based on the pricing of the most recent investment round of each company.
Product Hunt, a curation of the best new products, has seen hockey stick growth and increased their valuation fivefold since SVGS invested.
Sprig, a food delivery service that cooks and delivers healthy, inexpensive means to your office or home, has seen its investment value soared from $8 million to $268 million. They delivered more than a quarter of a million meals in 2014.
2RedBeans, the leading dating site for Chinese living in North America, raised money at a valuation of $16 million dollars. SVG invested at a valuation of $5. Top line sales tripled from 2013 to through 2014.
Modern Message identifies resident advocates in apartment complexes across America. They are cash flow positive, require no additional investment. They now represent over 600 separate apartment complexes nationwide.
Parrable, a unique identifier for mobile web traffic was on 2 million devices in the fall of 2014. Today, they are on more than 110 million separate devices.
Cargo Chief, using patent pending technology to connect truckers and shippers with their giant carrier network, achieved sales in excess of a million dollars 12 months after launch.
Mogul has had as many as 460,000 unique users in a single day. SVGS sponsored the 2014 Global Mogul awards that honors entrepreneurs, investors and startups that are positively impacting women worldwide.
A number of the companies like Hint Health are growing 100% 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, says Co-Founder Russell Lewis. We like to have our initial capital used to see if a marketing program is currently in use and 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 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 their 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.
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 market place. Investments are focused in the 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.