What is the reputation of 500 Startups?
8 Answers
Views • Upvoted by Dave McClure, I'm the founding partner.
Most Viewed Writer in Technology Investing
Dave and the 500 team is well known in the startup world, throughout the world. I'm right now in India, but most startup guys here know them as well. Anecdotally, I think it is the second most popular accelerator after YCombinator. They have backed 250 companies and 10 had successful exits. I have worked with a company funded by 500 startups. I think overall they look more cool and focused.
Here is an infographic on their work:
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Here is an infographic on their work:
Views • Upvoted by Dave McClure, I'm the founding partner. and Christine Tsai, Partner at 500 Startups
Most Viewed Writer in Dave McClure
500 startups is up there with Y-Combinator and Techstars as one of the top technology startup incubators in the world.
My experience comes from someone who is going through the current batch of companies. The best thing about 500 is the strength in numbers from the vast number of successful mentors who form the network of the "500 family".
In Australia, within the startup community they are well known and respected as well.
My experience comes from someone who is going through the current batch of companies. The best thing about 500 is the strength in numbers from the vast number of successful mentors who form the network of the "500 family".
In Australia, within the startup community they are well known and respected as well.
My company, Loku, is backed by 500 Startups and Dave McClure. Before working with them I did a ton of homework by talking to their founders, and in the end, I've been very happy with our choice.
Here's why I personally chose them:
1) "Real" and supportive. Doing a startup is a huge challenge. The process is tough, emotional, and trying. Through it all, these guys are 100% on your side. They encourage you to have fun, as well as foster your own individuality and creativity in the company. They don't expect that you follow a script or become a startup zombie, which, to me, was very important. Dave is also just an awesome guy, who in person is even better than his persona. Paul (who really kicks ass) and Christine are also awesome.
2) True help. They offer mentorship, connections, and support when you need it. They know that, as investors, they aren't experts in everything from distribution to design. Instead, they supplement with real life experts through a mentor network. Distributed advice, to me, is better than consolidated.
3) Progressive minded. They actively support women, international networks, and undervalued markets (family tech, etc). Huge plus.
4) Innovative VCs. 500 is disrupting venture capital (which is a low performing asset class) in a cool way. To start, early stage returns (where they invest) are the highest returns in the industry. On top of that, 500 believes that, while early stage ventures are hard to pick based on heuristics, they can be better chosen based on reliable data and real patterns. Therefore, they believe it's better to place more informed bets on traction and information instead of making fewer bets on founder pedigree / idea. As an ex-private equity guy, I think that this is a winning finanical idea.
5) Supportive of "your" choices. You can build a $B company, a lifestyle cash flow business, or a quick flip. Their model allows for all those outcomes, or even for you to change your goals as your circumstances adjust. That flexibility is really important to an entrepreneur.
As far as flaws, some people consider it a negative that 500 Startups makes so many investments. Some VCs use seed investors as "screens" to find great companies, and because 500 does so many investments, they might consider the social proof of a 500 company to be lower than others.
To solve this, 500 Startups doubles down on winners, which is, in and of itself, a big marker. More importantly, most good VC's develop an informed perspective on your company without relying too heavily on just the investor list. So while this gap is certainly a concern, it's definitely not a deal breaker.
Here's why I personally chose them:
1) "Real" and supportive. Doing a startup is a huge challenge. The process is tough, emotional, and trying. Through it all, these guys are 100% on your side. They encourage you to have fun, as well as foster your own individuality and creativity in the company. They don't expect that you follow a script or become a startup zombie, which, to me, was very important. Dave is also just an awesome guy, who in person is even better than his persona. Paul (who really kicks ass) and Christine are also awesome.
2) True help. They offer mentorship, connections, and support when you need it. They know that, as investors, they aren't experts in everything from distribution to design. Instead, they supplement with real life experts through a mentor network. Distributed advice, to me, is better than consolidated.
3) Progressive minded. They actively support women, international networks, and undervalued markets (family tech, etc). Huge plus.
4) Innovative VCs. 500 is disrupting venture capital (which is a low performing asset class) in a cool way. To start, early stage returns (where they invest) are the highest returns in the industry. On top of that, 500 believes that, while early stage ventures are hard to pick based on heuristics, they can be better chosen based on reliable data and real patterns. Therefore, they believe it's better to place more informed bets on traction and information instead of making fewer bets on founder pedigree / idea. As an ex-private equity guy, I think that this is a winning finanical idea.
5) Supportive of "your" choices. You can build a $B company, a lifestyle cash flow business, or a quick flip. Their model allows for all those outcomes, or even for you to change your goals as your circumstances adjust. That flexibility is really important to an entrepreneur.
As far as flaws, some people consider it a negative that 500 Startups makes so many investments. Some VCs use seed investors as "screens" to find great companies, and because 500 does so many investments, they might consider the social proof of a 500 company to be lower than others.
To solve this, 500 Startups doubles down on winners, which is, in and of itself, a big marker. More importantly, most good VC's develop an informed perspective on your company without relying too heavily on just the investor list. So while this gap is certainly a concern, it's definitely not a deal breaker.
Views • Upvoted by Dave McClure, I'm the founding partner. and Christine Tsai, Partner at 500 Startups
I completely agree that 500 Startups is right up there with Y Combinator. That they do not have a formal application process has given it an additional layer of mystique . It is amazing that they have developed such a well respected brand in under 3 years.
I visited 500 Startups last week and also spent some time with six founders of 3 different companies from their last batch. The thing that stood out was the level of camaraderie and collaboration they had. They were together for 3 months in the accelerator and are still in regular touch. It is probably a life-long network and I truly understood what "500 family" is all about.
I find that their Founders' List is an amazing feature to have. With the sheer number of companies, the list gives you access to a lot of people to seek advice from. Another benefit is that they are also potential customers! Having 200+ companies who would prefer your product over competition is a definite advantage for any startup.
That being said, I think they can work on their brand recall on the East Coast and emerging economies like India and Brazil. While some people are aware of 500, I personally find that Y Combinator has more recall. It is much older, so naturally more people may know about it.
500 has a fun and casual image, promoted by Dave McClure, which attracts a lot of entrepreneurs. It almost has a rebel streak that is attractive.
The interest in 500, though, is unparalleled. I come from a small town in India and some of my entrepreneur friends there were very curious to know about it. So I made a visual blog on my site. I am attaching it here for people who may not know about 500.
Overall I think that concept of "Having fun and getting things done" applies completely to 500. It will be great to see where this young fund goes.
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Disclaimer: The blog represents my views and interpretation of 500Startups, which may or may not be true.
I visited 500 Startups last week and also spent some time with six founders of 3 different companies from their last batch. The thing that stood out was the level of camaraderie and collaboration they had. They were together for 3 months in the accelerator and are still in regular touch. It is probably a life-long network and I truly understood what "500 family" is all about.
I find that their Founders' List is an amazing feature to have. With the sheer number of companies, the list gives you access to a lot of people to seek advice from. Another benefit is that they are also potential customers! Having 200+ companies who would prefer your product over competition is a definite advantage for any startup.
That being said, I think they can work on their brand recall on the East Coast and emerging economies like India and Brazil. While some people are aware of 500, I personally find that Y Combinator has more recall. It is much older, so naturally more people may know about it.
500 has a fun and casual image, promoted by Dave McClure, which attracts a lot of entrepreneurs. It almost has a rebel streak that is attractive.
The interest in 500, though, is unparalleled. I come from a small town in India and some of my entrepreneur friends there were very curious to know about it. So I made a visual blog on my site. I am attaching it here for people who may not know about 500.
Overall I think that concept of "Having fun and getting things done" applies completely to 500. It will be great to see where this young fund goes.
Disclaimer: The blog represents my views and interpretation of 500Startups, which may or may not be true.
Views • Upvoted by Dave McClure, I'm the founding partner. and Christine Tsai, Partner at 500 Startups
I'm going to speak from the perspective as the founder of 106 Miles, a network of 500 startup engineers and friends that meets several times a month in Silicon Valley (meetup.com/106miles) and Southern California (meetup.com/106milesSoCal
In Silicon Valley, every week at least one founder asks me for an introduction to 500 Startups, and the biggest question I get asked is "How does someone apply to the 500 Accelerator program?"
I've been asked about 500 Startups by founders who are new to the area more than YCombinator, TechStars, and Google Ventures combined.
The 500 Startups brand is seen as friendly to women founders as well as entrepreneurs not based in Silicon Valley (including entrepreneurs not in the U.S.!) I'm astounded at how much brand cachet 500 Startups has, given that the firm has only been around for two years (can that be right??).
In Southern California, most entrepreneurs I talk with have heard of 500 Startups and are eager to learn more. Again, I'm astonished both by how many people have heard of 500 Startups, and how interested most founders are in it.
500 Startups' great reputation among 106 Miles members is why I signed on to be a mentor at 500 Startups recently. I've been impressed by both the quality of great people there (it really is "the 500 family"!), and by the scale 500 has achieved in a very short amount of time.
In Silicon Valley, every week at least one founder asks me for an introduction to 500 Startups, and the biggest question I get asked is "How does someone apply to the 500 Accelerator program?"
I've been asked about 500 Startups by founders who are new to the area more than YCombinator, TechStars, and Google Ventures combined.
The 500 Startups brand is seen as friendly to women founders as well as entrepreneurs not based in Silicon Valley (including entrepreneurs not in the U.S.!) I'm astounded at how much brand cachet 500 Startups has, given that the firm has only been around for two years (can that be right??).
In Southern California, most entrepreneurs I talk with have heard of 500 Startups and are eager to learn more. Again, I'm astonished both by how many people have heard of 500 Startups, and how interested most founders are in it.
500 Startups' great reputation among 106 Miles members is why I signed on to be a mentor at 500 Startups recently. I've been impressed by both the quality of great people there (it really is "the 500 family"!), and by the scale 500 has achieved in a very short amount of time.
