Find those high upside bridge rounds & more on Deal Sheet!
Co-Founder & Co-CEO @ Deal Sheet → Curated private market SPV investments for accredited investors | GP @ Riverside Ventures (300+ company portfolio)
📈 5, 10x+ Returns (on paper) for SPVs into Bridge Rounds 📈 Resurfacing this segment from a previous Last Money In Media post. We believe bridge rounds can present “value” and/or can be a way to invest in a business that is otherwise inaccessible as future larger priced financings may be taken completely by 1-2 large investors + pro-rata investors, leaving no room for other new VCs. Below, are a few examples of blinded companies that Zachary or I have been marked up 10x or more on: 1) Company A (industry: autonomous) – Seed Bridge Round →10x return distributed ~1 year later 2) Company B (industry: SaaS) – Series A Bridge → ~16x markup within ~2.5 years in a round most recently led by Insight Partners 3) Company C (industry: VR) – COVID bridge → raised at valuation cap at ~10x higher in ~2 years 4) Company D (industry: Fintech) – Series A ext. → ~10x val, markup in less than 2 years, unicorn priced by Goldman Sachs 5) Company E (industry: CPG) – COVID/Seed Bridge Round → ~41x val. markup in less than 3 years in a series C round (not yet announced) Also… because the dollar amount raised in bridge rounds is typically small in nature, a company is often willing to sacrifice optimizing valuation for speed to raise given the amount raised is likely a small dilution hit for the company – a 5-10% dilution hit as opposed to the 25-33% seen for many priced financings. That being said, there are many bridge rounds that bridge to company shut down, so beware. full post in comments. -- Powered by Sydecar, Last Money In Media is the most actionable venture capital newsletter. Written by Zachary Ginsburg and Alex Pattis, who have deployed >$200M across 750+ SPVs.
