Hi all! Sorry to have uploaded my writeup rather late because of some troubles getting it uploaded! However, below is an overview of the company.

Overview

Benchmark Capital is a venture capital firm founded in 1995 responsible for the early stage funding of some very successful startups.

The firm’s strategy is to be the first investor in technology-driven companies that seek to create new markets and have significant growth potential. The firm focuses on early-stage investing and takes a labor-intensive, service-oriented approach in markets where partners have direct experience. Benchmark invests in technology-driven companies in the areas of enterprise software and services, communications & security, semiconductors, mobile computing, consumer services and financial services.  

Benchmark investments range in size from as little as $100,000 to as much as $10 or $15 million. Typically, they invest $3 to $5 million initially and expect to invest $5 to $15 million over the life of a company. They invest for the long haul and look for entrepreneurs with a similar perspective.

 

Below are the different stages of VC fundings

 

 

1. Seed Money: Low level financing needed to prove a new idea (Often provided by “angel investors”)

2. Start-up: Early stage firms that need funding for expenses associated with marketing and product development

3. First-Round: Early sales and manufacturing funds

4. Second-Round: Working capital for early stage companies that are selling product, but not yet turning a profit

5. Third-Round: Also called Mezzanine financing, this is expansion money for a newly profitable company

6. Fourth-Round: Also called bridge financing, 4th round is intended to finance the going public process

 

Jonathon, who is one of the partners, hosted us and gave us the overview of the roles of a VC and how different were they from the rest of the VC in the bay area. It was really a great visit to the VC as most of us only had vague ideas beforehand. Thank you so much Jonathon!!

 

 

 

 

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