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500 Startups

500 Startups23 posts

500 Startups is an American Seed Accelerator started by Dave McClure in 2010. The Company has invested in over 300 Internet startups.

24 Jul, 2015

Discusses follow-on investments

Interview

Following Sam Altman’s commitment to offer follow-on investments to all companies that go through Y Combinator, McClure says 500 Startups has a different approach:

We make follow-on investments when we think we are going to make money and we don’t when we don’t think we are going to make money. It’s pretty simple. I think if other investors are worried more about my opinion than they are about the company’s performance, there is already a problem. I recognize it happens but that’s just part of the market. We generally wait until after Demo Day and after they have a term sheet from another investor. Signaling is important before Demo Day but we don’t worry about it after Demo Day.

McClure says 500 Startups does follow-on investments for 20-30% of its companies.

What's this? This is an unbiased just-the-facts news timeline ('newsline') about 500 Startups, created by Newslines' contributors. Help us grow it by finding and summarising news. Learn more