What is the background
of Revolution?
Revolution is a Washington, D.C.-based venture capital fund
founded by AOL co-founder Steve Case in 2005. The firm has two funds, Revolution
Ventures, a $200M fund for early stage investments and Revolution Growth, a $450M fund for later stage investing. We focus on investing in technology-enabled
companies that empower consumers and have the potential to disrupt multi-billion
dollar industries. There are 15
investments in the Revolution Growth portfolio and 9 in the Revolution Ventures
portfolio, and we hope to invest in a handful more in 2016. We take a team
based approach to investing that allows us to concentrate our strategy and time
on building successful companies.
What kind of deals are
in your wheelhouse?
On the Growth fund we seek companies with a revenue run rate
of $20M or greater. We look to fund consumer
tech and SaaS-based businesses that are attacking large, traditional industries
with innovative new products and services.
Many existing industries are on the brink of disruptive change.
We’re flexible on ownership stake and deal structure. We take board seats in most of our deals. We want the right team, with the right
product disrupting preexisting multi-billion dollar industries.
How do you handle
syndication and how do you divide up the work?
We have done deals with a wide range of top-tier venture
investors. Examples of this include
venture deals with General Catalyst and private equity deals with Carlyle. With regards to the work, it comes down to filling
in the gaps with our expertise. We have a focus on the four Ps -- partnerships,
positioning, people, and policy. Partnerships are about helping them build key
strategic partnerships on deals that will actually help move the needle. On people, it’s about recruiting top level
executives and also recruiting exceptional, well-known board members. Presence is about gaining visibility in the
marketplace for customers, partners, and investors. Policy is important if they are in a
regulated environment.
What do you do to help
the portfolio grow?
We help them get the next round of funding or go
public. And help them across the life
cycle with many different aspects of the business including strategy,
marketing, product, and finance.
Do you have any portfolio
companies in Texas?
We have two investments in Austin--Bigcommerce which we
syndicated with Softbank, General Catalyst, and Floodgate. We’re also in Sparefoot with Floodgate,
Silverton, and Insight Venture Partners. We would love to find more deals in
Texas as the Rise of the Rest is a big part of our thesis, which is the idea
that high-growth companies can now start and scale anywhere, not just in a few
coastal cities.
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