Venture capital firms fund promising new ventures to bring inventions and innovations to the market. Here are the top VC firms for tech startups out there.
1. Sequoia Capital
Founded in 1972 by Don Valentine, Sequoia is probably the best-known venture capital firm, when it comes to technology startups. It is headquartered in Menlo Park, California, with offices in Israel, China, London, Hong Kong, and India.
The firm focuses on mobile and internet startups, healthcare, energy, and fintech ventures. It also takes part in all levels from seed to the largest funding rounds.
Sequoia has invested in over 1,000 companies in its four decades and together, they control a market capitalization of over $3 trillion today. This list includes many of the world’s top technology brands from Apple to Google, Nvidia, LinkedIn, Oracle, Yahoo!, Instagram, Stripe, YouTube, Whatsapp, PayPal, and so on.
Formally known as Accel Partners, Accel is also an American venture-capital firm. It was founded in 1983 by Jim Swartz and Arthur Patterson. The company is headquartered in Palo Alto, California, with offices in London and Bangalore.
Its list of notable investments and IPO exits include Facebook in 2012, Atlassian in 2015, Braintree in 2013, Etsy in 2015, Cloudera in 2017, and many more.
Accel works with all funding levels from seed to growth stage. And some of its notable early investments including Flipkart, Dropbox, Slack, and even Facebook.
3. IDG Capital
Founded in Boston, Massachusetts in 1992, IDG Capital is headquartered in Beijing, China. It is the first western VC firm to enter the People’s Republic and has invested in over 1,000 companies, with over 200 exits to date.
IDG Capital has also funded more than half of all Chinese unicorns in their early rounds, and this speaks a lot about the firm’s expertise in the region and Asia, generally.
Some of its notable investments include Baidu, Xiaomi, Tencent, Qihoo 360, Bllomsky, Beibei.com, NIO, Animoca, Bilibili, and over a thousand more.
4. 500 Startups
Unlike many of the other firms on this list, 500 Startups is a startup accelerator with offices around the world. This means that they admit promising startups, with mentorship and an initial seed funding, to see how the idea works out.
500 Startups has a number of unicorns in its portfolio, ranging from Udemy to Talkdesk, Canva, Grab, and GitLab. There are also many centaurs with $100+ million valuations and over 250 exits, including Wildfire for $350 million, Viki for $200 million, and Simple for $117 million.
The company has invested in over 2,400 startups in 75 countries to date. It has locations around the world with accelerator programs, including Seoul, Dubai, Mexico City, Dubai, Kuala Lumpur, Miami, and others.
5. Plug and Play Tech Center
Plug and Play is a silicon-valley based early-stage investor and the world’s largest accelerator, founded in 2006 by Saeed Amidi. It has offices in over 30 locations around the world, including Berlin and Hamburg in Germany, Tokyo, Singapore, Beijing, and Amsterdam.
The company offers a 10-week program called Startup Camp for seed round investing. It is also involved in angel-round investing and series A rounds. Notable companies in its portfolio include Credit Sesame, Vudu, Dropbox, PayPal, Zoosk, and many more.
Plug and Play accelerated 1,450 startups in 2019 and 2,065 startups in 2020. It made 162 investments in 2020 with a $108,000 average check size. 66% of those investments were seed stage, while 31% were early-stage rounds. It also had 12 portfolio exits and 4 new unicorns added to its portfolio.
6. Andreessen Horowitz
Although the Andreessen Horowitz firm was officially founded in 2009, the two founders Marc Andreessen and Ben Horowitz had previously invested in tech startups together and separately.
Now officially a fund with over $4 billion under management, it holds about 1,000 companies in its portfolio. It also counts over 150 exits, including DigitalOcean, Okta, and Jumio.
Andreessen Horowitz invests in everything from gaming to e-commerce, mobile, security, and education. It invests both in early and growth-stage companies.
7. Y Combinator
Y Combinator is an early-stage venture capital firm that provides seed funding and mentorship to startups. It was founded in 2005 and is headquartered in Mountain View, California.
Once every 6 months, startups get $125,000 in funding and go through a 3-month accelerator process. This period ends with a final presentation, called Demo Day for pitching the ideas.
Y Combinator has helped launch over 2,000 companies and its portfolio includes impressive brands like Stripe, Coinbase, Airbnb, Reddit, Twitch, and DoorDash.
8. Tiger Global
Tiger Global focuses on both private and public equity investments. And this makes it more of a hedge fund than a pure VC firm.
With over $50 billion of assets under management and combined from over 10 private equity funds, the firm is a VC heavyweight. And it dedicates about 30% of its funds to series A and B funding rounds.
Tiger’s notable investments include Quora, Coinbase, Spotify, Facebook, GitLab, Nubank, and many others.
9. Quake Capital Partners
This VC firm and accelerator was founded in 2016 and is headquartered in Austin, Texas. It is relatively small, compared to others on this list, but it stands out by focusing on funding women, people of color, and those with military backgrounds.
It features a 12-week accelerator program and includes companies such as Recoup Fitness and Whose Your Landlord. Its 4 exits include Pipa, RideKleen, and Love Goodly.
10. Zhen Fund
China is one of the world’s current innovation hotspots and the Chinese Internet is also a world of its own. Zhen Fund caters to this industry and is headquartered in Beijing, China.
The VC invests in the Internet, technology, AI, education, and related fields. It was founded in 2011 by Bob Xiaoping and Victor Qiang Wang, and currently has over $1 billion of assets under management.
Some of its recent exits include Ehang, Yatsen Holdings, EverString, Ucommune, and Ke.com. Others include meicai.cn, perfectdiary.com, and yitutech.com
Source: Nnamdi Okeke