Bullpen Capital is an early-stage venture fund being formed to make follow-on investments in Internet technology companies that have been initially funded by super-angel capital efficient funds. Extending the capital efficient model beyond the seed stage keeps options open for the founders and investors. Working closely with the leading super-angel funds, we can act quicker than most other venture investors.
The rise of the super-angels is a capital market response to a new technology trend: the rise of the lean venture, typically an Internet service deploying fast-to-market technology which enables rapid market validation before large capital requirements. The super-angels are emerging as a natural response to a decades long over-sizing of venture firms, built more to fund the semiconductor factories of the past than Internet firms of today.
Bullpen works with its super-angel partners to:
•Extend a seed round to give a start-up more time to prove itself
•Fund a company requiring more early money than the usual seed deal
•Restart a company that is a “fallen angel” but still has great promise
•Fund a “rising star” needing a small B round it before it goes to VC auction
The lean model does not depend on the lightning strike of finding the rocket-ship that is immediately successful after its seed round. Almost every rocket-ship has a rocky start, requiring post-seed nurturing before ascending. This usually entails one or more “pivots”, in which a company’s basic direction must be changed to find its market. These changes are wrenching, and require additional capital before proof points are met. Bullpen’s major role is to lead post-seed stage rounds that support these pivots.
With Bullpen rolling up its sleeves and helping with the pivot round, traditional VC becomes more efficient by focusing on financing companies as they are handed off for scaling, requiring levels of investment consistent with traditional economics.This creates a win for the super angel, the founders, and the traditional VC, as Bullpen helps makes the entire financing arc more efficient
- Randy Komisar