500 Startups is a global venture capital seed fund with a network of startup accelerator programs headquartered in Silicon Valley. 500 Startups claims to be the most active seed investor globally with more than 2,000 investments spanning over 60 countries.
Seed Stage, Early Stage
0 to $5M
FinTech, E-commerce, Education, Internet of Things (IoT), Data, Artificial Intelligence (AI), Media & Entertainment
For the accelerator program, it starts with an application form and an interview. For the VC funding, it starts with a pitch to sent by startups to the VC firm. If the VC firm team is interested, they will reply and give the startup a question list for commercial due diligence (CDD) purpose. If CDD turns out to be good, financial due diligence (FDD) and legal due diligence (LDD) might take place. After that, the VC firm might send a term sheet to the startups and negotiation process starts from there. When both parties reach a consensus on terms and structure of the deal, share subscription agreement (SSA) and shareholders’ agreement (SHA) would be drafted and finalized. Deal closing includes payment and documentation and report to the appropriate authority.
500 Startups is led by Christine Tsai, a female veteran product marketing manager with 8.5 years of experience with Google and Youtube. As the most active seed investor, 500 Startups has one of the widest network of founders, which might come in very handy for peer-to-peer learning, mentorship or when startups need an intro to a customer in a totally new market or access to blocked API etc. Any startups which got admitted to its accelerator program will receive more than US$100K in funding.