To optimize the composition of their porfolios, VCs like to preserve the "option value" of changing their minds to yes. Because we're highly diversified, we can afford to make a final decision quickly.

At RSCM, we designed our fund specifically to handle lots of small investments. So, unlike most VCs, we don't need huge exits to cover our costs.

Check back soon for more...

 

 

Adventures in Seed Funding

Massive Volume + Quick Turnaround

Coming in the second half of 2010. 100-200 seed investments per year. Investment decisions in 2-weeks

Yes, we do love fledgling startups. They may not have finished products, marquis customers, or proven markets. But every one has "Black Swan" potential.

Given the opportunity they represent, seed-stage startups are badly underserved. The chances of finding funding are so low that many qualified entrepreneurs sit on the sidelines. It takes so long to put together a decent-sized angel round that many promising companies miss their market window. The transaction costs are so high that a good chunk of investment capital evaporates instantly.

We're going to change that. We're planning to fund 100-200 seed-stage startups each year and give founders a yes-no decision in two weeks. It's a win-win. Lots of entrepreneurs get a chance to innovate. We get a well-diversified portfolio.

It's time to bring innovation to the business of innovation.

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