500 Startups raises $85m for its third VC fund

Photo sourced from 500 Startups website

Silicon Valley-based 500 Startups, an early-stage seed fund and startup acclerator, has raised $85 million for its third global fund, 15 per cent short of its original target, according to a report in Wall Street Journal. The company has closed the third fund at this amount.

The partners in the fund include Tokyo-based Dentsu, Yahoo Japan and Malaysia Venture Capital Management Berhad, a venture firm backed by the Malaysian government.

Speaking on the funding, McClure, co-founder of 500 Startups, said, “It wasn’t an easy road, US institutions took exception with the firm’s “index fund” approach to venture capital and the small stakes it takes in companies, among other reasons.”

McClure co-founded 500 Startups with Christine Tsai in 2010 with an aim to assist consumer and small & medium sized internet startups with funding and incubator programmes. According to the company, all of the three 500 Startups’ main funds had a net investment rate of return of about 20% at the end of the second quarter.

The firm’s 1,200 portfolio companies include such startups as Credit Karma Inc., Intercom Inc., Twilio Inc., Talkdesk Inc. and Udemy. It plans to invest in some 350 to 400 startups this year, Mr. McClure said.

500 Startups has accelerated over a 1,000 startups across 50 countries since 2010. It has launched a series of microfunds in Asia in the recent past including $15-million South Korea fund called 500 Kimchis, Southeast Asia fund called 500 Durians, and $10-million Thailand fund called 500 TukTuks.

The company has also backed about 30 Indian startups from its global fund, including TargetingMantra, a personalisation platform for online businesses, and marketing firm ZipDial, which was acquired by Twitter in January. It is currently in the process of raising funds for its India fund Startupwallah.

Also Read: 500 Startups looking to make 17 new investments in Vietnam

FPT Corp, 500 Startups to set up incubator for startups in Vietnam

500 Startups, MaGIC to launch growth-stage accelerator for SEA

CatchThatBus raises $1.5m from Jungle Ventures, 500 Startups

Malaysian automobile portal Carsome raises $350k from 500 Startups & IRR

500 Startups strengthens South East Asia team with two new partners in Vietnam

500 Startups beefs up South East Asia team with two new hires in Singapore

‘Krating’ to join 500 Startups as Venture Partner

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.