News – PH – Index closes a special $ 200 million seed capital fund to intensify its multilevel thesis – TechCrunch


The once quiet world of investing seeds turned hectic a few years ago as dedicated seed funds and angel networks increased in size and speed.This environment has now crept into today’s world of seed capital hurricane: money in Galore, solo capitalists wasting streams of rolling capital dollars wherever they find a cap table gap, crowdfunding cash buzzing around – and in the eye of the storm are the founders who only get a term sheet for want to snap up their business and get back to work

Into this maelstrom comes Index Ventures, which today announced the completion and launch of a new $ 200 million vehicle for investing in seeds known as Index Origin, the fund’s name pays homage to its long run Company’s commitment to seed and first-check investment, assisting companies such as Robinhood, Figma, Deliveroo, and Wise (aka TransferWise) in the seed state

“We believe that seed investing is really the essence of venture capital,” said Nina Achadjian, Partner at Index since 2020, who joined the company as a principal in 2017. “It is when you, as an investor, have the greatest leap in confidence have to do ”

She noted that the company “has made over 35 investments in seeds in the past 18 months” The new Index Origin fund would be an increase in volume

There is extreme competition for cap tables in the earliest start-up phases today, and Index is focusing on a few offers to maximize the sales pitch with founders

The first emphasizes flexibility Achadjian noted that there was some kind of devil’s deal in place for founders on what kind of money to take in the startup phase, “Do you want a dedicated seed fund that is phenomenal at what it does or want You have a tiered fund that may not have seed-specific resources but can do a quick follow-up [round], “she rhetorically asked.” There wasn’t really the right product out there to help founders have the best of both worlds , and that was kind of an inspiration for Index Origin ”

In line with his multi-level thesis, all index partners can issue seed checks from the new fund and invest in any industry of interest to them in any region (especially in the USA and Europe, although this is not expressly limited to these markets) Achadjian noted that the fund is more flexible in working with other firms, angels, and the entire group of start-up funders as the company can potentially double in later rounds

That solves the capital component Index offers a trilogy of programs to simplify the scaling of companies. This includes a “First Hires” program, which is intended to help startups with early recruitment an early adopter network that helps companies connect with potential design customers to find and accelerate adaptation to the product market; and finally The Index Network, an expert network of specialists (think DevOps, SalesOps, or technical architecture) that startup founders can consult when they encounter roadblocks.These programs and the large seed fund will have a dedicated team to help out with the search and helps grow companies at the seed stage

Part of the impetus for these new programs is the diverse mix of founders who have started businesses in recent years. “We actually found that many founders had technical backgrounds, but in recent years the company has moved on to more Business founders relocating, “she said. This meant helping these founders find technical talent and build a network of technical expertise to help them grow

Second, Index wants to increase the diversity of founders in its investment pipeline. “This is another reason we wanted to seed because it gives us wider access to the upper funnel,” stated Achadjian. “I think if you can make an impact want the diversity, this is actually where you can make the most impact ”

Index’s approach is similar to that of Sequoia, which announced earlier this year that it had raised $ 195 million for a seed fund that was also focused on the U.S. and Europe, most of the other companies in the tiered investing game are putting wagers in their early stage funds rather than creating standalone investment vehicles, with possibly dozens of checks to be issued in the coming months, Index is expected to bring even more activity to the hot seed market p>

Index Ventures, Start-Up Capital, Financing, Risk Capital, Startup Companies

News – PH – Index closes a special start-up capital fund of 200 million USD to intensify the multilevel thesis – TechCrunch
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​​Index Ventures launches Index Origin, a $ 200 million dedicated seed fund