Publications
Publications
- May 2022 (Revised December 2023)
- HBS Case Collection
Founder Collective
By: Jo Tango and Alys Ferragamo
Abstract
Founder Collective ("FC") launched in 2009 with a clear mission: to be the most aligned fund for founders at the seed stage. In keeping with its mission, FC maintained smaller fund sizes and was not a lifecycle investor. By November of 2021, the seed market had become more competitive, and FC had successfully picked several Unicorn and even Decacorn investments, causing some LPs to wonder about the opportunity costs of FC’s “no pro rata” view. Managing Partners David Frankel, Eric Paley, and Micah Rosenbloom wondered if the seed investing sector had changed too much and if they should evolve their strategy. They contemplated three potential paths forward: start investing their pro rata in later rounds, raise an opportunity fund, or continue their current strategy.
Keywords
Seed Investing; Business Startups; Mission and Purpose; Investment; Competitive Strategy; Venture Capital
Citation
Tango, Jo, and Alys Ferragamo. "Founder Collective." Harvard Business School Case 822-129, May 2022. (Revised December 2023.)