Index Ventures Past Success and Investment Philosophy
Index Ventures has been a notably successful investment company in the already crowded world of venture capital firms. A large portion of the success from the company has come from a few well-known names that Index Ventures stood by from the earliest stages of the business all the way to mainstream success.
In its company portfolio, Index Ventures boasts startup companies turned into major business ventures such as Slack, Deliveroo, Roblox, Robinhood, Squarespace, and Patreon, among several others. With Deliveroo and Roblox seeing major IPOs in recent years, Index Ventures has proven itself to have a strong eye for startups exhibiting major potential for business growth very early on.
This plays well into the investment philosophy that the company follows. While many venture capital firms look to invest later in the life span of the startup companies they choose, Index Ventures tends to focus on a business from its seed stage through the entire lifespan, up to the launch of an IPO. Starting on the ground floor allows Index Ventures to closely follow the startup they invest in, ensuring its success at a more involved level. This philosophy certainly applies to the creation and close of Index Origins.
Plans for Index Origins
As a $200 million fund, Index Origins has significant flexibility with its investment plan. More specifically, because it only dedicates its resources and $200 million capital to seed-stage startups. Furthermore, Index Ventures could potentially fund hundreds of businesses. Most major venture capital firms usually combine early stage funds with seed funds, thus leaving less flexibility and focus to investment strategies.
The company plans to invest primarily in the United States (US) and Europe, though Index Ventures will not limit itself geographically. The “First Hires” network created by the company will also allow for specific resources and focus to be placed on startup companies with particular potential. Index Ventures is host to a team of experts in various areas of business, which allows startup founders to contact them with any questions or help in their company’s development process.
When commenting on the $200 million seed fund, Index Ventures Partner Nina Achadjian said, “Do you want a dedicated seed fund who is phenomenal at what they do, or do you want a multi-stage fund that might not have seed-specific resources but they can do a quick follow up [round]? There hasn’t really been the right product in the market to help founders have the best of both worlds, and so that was kind of our inspiration for Index Origin.
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.