(past 24 months)
top 10 M&A exits
(in consecutive years)
Venture capital is a repeat business. Our reputation is invaluable. The best way to get to know us is to speak with the entrepreneurs that have chosen to partner with us.
The best VCs are aligned with founders. We have deliberately kept our early stage fund small to ensure that our fund economics and structure are aligned with founders. We have a separate growth fund that allows us to support entrepreneurs at any stage.
Entrepreneurs are better off with a flexible partner. This is only possible if investors are flexible on ownership percentage and board seats.
We set out to prove this concept in 2006, raising our first fund from many well-known corporate executives. That fund is now among the top performing venture capital funds of the last decade. The firm has repeated this success for the past eight years with the same mission.
Greycroft is actively investing from two funds today: Greycroft III, a $175 million venture fund, and Greycroft Growth, a $200 million growth-stage fund. The venture fund invests between $100,000 and $5 million at inception. The growth fund invests up to $20 million. These two funds enable us to support entrepreneurs at any stage, from inception through IPO.
Greycroft is a syndicate-friendly firm. We have no minimum ownership percentage. We feel that ownership should be earned, and is best allocated to investors who prove their value over time through business development, recruiting, follow-on funding, and, ultimately, M&A. We also do not require board seats, although we accept them when an entrepreneur insists.
Our portfolio companies benefit from active, hands-on assistance from the partners. While Greycroft has dedicated staff to assist with marketing, recruiting, and finance, the firm believes that partners should be the front line for portfolio interaction. We work as a team, and leverage an extensive network of media and technology connections to help our portfolio companies gain visibility, build strategic partnerships, and successfully exit.
Most of our portfolio companies come through introductions from angel investors and portfolio CEOs. If that doesn’t apply to you don’t despair, try looking us up on LinkedIn and asking a mutual friend for an email intro.
We are known for our ability to generate revenue for our companies. We host over 20 “digital innovation days” a year with large companies, where we curate events on-site with many senior decision makers. We also host an annual Greycroft Summit, bringing together executives from over 100 of the world’s largest companies across a variety of sectors.
Beyond introductions, we strive to be a trusted advisor to our entrepreneurs. We are constantly helping on a broad range of initiatives including recruiting, financing, exit, and strategic decisions. Entrepreneurs also benefit from being part of the Greycroft community, comprised of top teams in their respective sectors.
Approximately half of Greycroft’s portfolio is in New York and Los Angeles, and the other half is spread across the globe. Companies outside of New York and LA typically seek us out because we can help them expand into our core markets.
We invest across a broad spectrum of Internet and mobile companies. We currently have clusters of companies in consumer Internet, eCommerce, enterprise software, cloud computing, financial technology, and advertising technology.
Greycroft Partners makes initial investments from as little as $100,000 in our seed program to up to $20MM from our growth fund. The typical check size from the venture fund is a $2MM Series A investment, give or take $1MM. The total round is usually twice this size by the time a syndicate comes together. We do 15 to 20 of these types of investments a year, making us one of the most active Series A investors in the United States.
At this stage we have co-invested with almost every venture fund in the US, although we prefer to syndicate with one or two hands-on investors and not do large party rounds. There are a number of funds who like to participate alongside Greycroft in Series A rounds and we can help by introducing an entrepreneur to other VCs to build a quality syndicate.
Strong Founding Team: We prefer to fund teams with prior market and technology experience. We have had our best success with repeat entrepreneurs, although we fund plenty of first-time entrepreneurs as well.
Large Potential Market: We have to believe that a company is capable of reaching a $100MM+ outcome, even if the path is uncertain and subject to change.
Commercial Adoption: In consumer-oriented ventures we look for highly engaged users. In business-oriented ventures we look for revenue from at least a handful of paying customers who we can call and reference.