Next we have Dave McClure, who is raising up to $30 million for a fund called 500 Startups (which would work out to $60k per startup — but I’m thinking it’s more a play off the name of his blog). The filing does not indicate any commitments yet, nor any partners beyond McClure…
As an aside: I last saw both Maples and McClure at a Silicon Valley event hosted by TheFunded back in February. The basic explanation for raising institutional funds was as follows:
- Angels can usually move quicker than can traditional VC firms, due to more centralized decision-making (i.e., one guy). That gives angels an advantage, since startups need cash now.
- In many cases, however, a single angel won’t do. You need a syndicate of angels in order to size a round properly. That involves lots and lots of phone calls, thus reducing the “time” advantage.
- An institutional fund either eliminates — or at least reduces — syndication needs.