2014.06.27
500 Global Team
If a tree falls in a forest and no one is around to hear it, does it make a sound?
For over a year, I’ve been asking myself a similar question regarding fundraising for 500 Startups. Prior to the JOBS Act, it wasn’t legal for venture capital and hedge funds to talk publicly about their fundraising activities. Imagine not being able to talk about the *exact* thing you need to talk about. Imagine trying to sell something but not being able to advertise it. Anyone else see a problem here?
Of course, traditional funds have raised capital for years playing by these rules, and up until today 500 has also operated in the same way. However, it’s a more complicated and delicate sales process when you have to establish a “pre-existing relationship” before you can say anything about your fundraising… even if you think you’re talking to “accredited” investors. Now, the new general solicitation rules introduced by the SEC under the JOBS Act have changed the game, and, as of yesterday, 500 Startups is one of the first funds to take advantage of these new rules.
Therefore, I can now tell you we are currently raising our third flagship fund. I can tell you that the fund has a $100 million target. And, I can tell you that, if you’re a U.S. accredited investor and meet our investor requirements, you can invest in our fund. Seems simple, right? But for the last 80 years, I wasn’t able to do that (legally at least).
Before today, our lawyers (and likely the SEC) would have had my head for those comments, but I can now say them without fear given our new SEC filings and verification processes. No longer do we have to say “no comment” when a reporter or member of the public asks if we are fundraising. While that might not sound as sexy as releasing a new 3D-printing product or a video-enabled e-commerce startup, I’m excited by the opportunity.
The work we have to do on our fund is just beginning, but let’s give some credit to government officials for [hopefully] getting this one right. We should also give thanks to folks like Naval Ravikant, Kate Mitchell, the NVCA, and other good folks who worked hard for years to get the JOBS Act passed by Congress.
Lastly, if you’d like some info on our funds — feel free to apply at 500.co/invest.
2. AS OF 30 JUNE 2023 AND INCLUDES PRIVATE, PUBLIC AND EXITED COMPANIES. FOR EXITED POSITIONS, VALUATION DATE IS DATE OF EXIT. THESE FIGURES ARE ESTIMATES, AGGREGATED ACROSS ALL PORTFOLIO COMPANIES HELD ACROSS ALL FUNDS ADVISED BY 500 STARTUPS MANAGEMENT COMPANY, LLC AND ITS AFFILIATES, AND ARE BASED ON INTERNAL DATA THAT HAS NOT BEEN EXTERNALLY VERIFIED AND RELIES ON PORTFOLIO INFORMATION SUPPLIED BY EXTERNAL SOURCES WHICH HAS NOT BEEN VERIFIED, MAY NOT BE ACCURATE OR UPDATED. THESE VALUATIONS ARE ESTIMATED IN ACCORDANCE WITH 500 GLOBAL’S VALUATION POLICY. SEE 500.CO/COMPANIES FOR A FULL LIST OF PORTFOLIO COMPANIES. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RETURNS. PORTFOLIO COMPANIES DISPLAYED ON THIS PAGE ARE NOT NECESSARILY REPRESENTATIVE OF ALL INVESTMENTS IN VEHICLES MANAGED BY 500 STARTUPS MANAGEMENT COMPANY, L.L.C. (TOGETHER WITH ITS AFFILIATES, “500 GLOBAL”) AND THERE CAN BE NO ASSURANCE THAT THE INVESTMENTS WILL BE PROFITABLE OR THAT OTHER INVESTMENTS MADE IN THE FUTURE WILL HAVE SIMILAR CHARACTERISTICS OR RESULTS. THIS LIST INCLUDES CURRENT AND FORMER 500 GLOBAL PORTFOLIO COMPANIES WHICH HAVE BEEN ACQUIRED AS WELL AS COMPANIES WHICH HAVE UNDERGONE AN INITIAL PUBLIC OFFERING. THIS LIST IS UPDATED PERIODICALLY AND AS SUCH MAY NOT REFLECT RECENT 500 GLOBAL INVESTMENTS. PAST RESULTS OF 500 GLOBAL INVESTMENTS, POOLED INVESTMENT VEHICLES, OR INVESTMENT STRATEGIES ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. NO CONTENT ON THIS PAGE SHOULD BE CONSIDERED AS AN OFFER TO SELL OR SOLICITATION OF INTEREST TO PURCHASE ANY SECURITIES, CONSTRUCTED AS FUND MARKETING MATERIALS BY PROSPECTIVE INVESTORS CONSIDERING AN INVESTMENT INTO ANY 500 GLOBAL FUND, OR USED AS THE BASIS FOR ANY INVESTMENT DECISIONS. ALL LOGOS, NAMES, AND TRADEMARKS OF THIRD PARTIES REFERENCED HEREIN ARE THE TRADEMARKS AND LOGOS OF THEIR RESPECTIVE OWNERS. ANY INCLUSION OF SUCH TRADEMARKS OR LOGOS DOES NOT IMPLY OR CONSTITUTE ANY APPROVAL, ENDORSEMENT OR SPONSORSHIP OF 500 GLOBAL BY SUCH OWNERS.
3. AS OF 30 JUNE 2023. INCLUDES LOCATION OF EMPLOYEES, CONTRACTORS AND CONSULTANTS.
