STRATEGY

 

We believe in the future of the Southern California tech ecosystem. Los Angeles, together with Orange County and San Diego make up one of the fastest growing tech ecosystems in the world. Yet median valuations in Southern California remain below New York and the Bay Area (including San Francisco and Silicon Valley) despite a growing list of notable exits and IPOs, and a continually expanding number of exciting new ventures. The area offers significant talent, several top tier universities, an increasing number of successful serial entrepreneurs, world class incubators and accelerators, as well as numerous seed, and early stage funds. 

However, there are two converging trends that are causing a significant gap in this market when it comes to the lifecycle of these tech companies.

First, the significant increase in the number of seed and early stage funds in Southern California in the past few years has resulted in a growing number of startups being funded every year that will need growth capital beyond Series A to continue scaling toward an eventual successful liquidation event.

At the same time, it is getting much harder for startups to raise Series B capital as many growth funds now have significantly higher expectations than they did just a few years ago, resulting in a considerably higher bar that start-ups need to meet to qualify for Series B funding. Additionally, there are a limited number of growth funds focused on Southern California making it even more challenging and competitive for startups to get Series B funding.

This leaves many startups in a difficult position, as they need additional funding to bridge the 6-12 month gap needed to scale to the higher levels now required to qualify for Series B funding. 

Navigate Ventures was created to fill this funding gap and bridge Southern California’s most exciting and promising startups between Series A and Series B.  Our strategy is focused on working with Series A and Series B funds to identify high potential startups with the best teams, and funding their growth while providing strategic and operational guidance and mentoring by our partners and the many advisors in the Navigate Ventures network.

 

SECTORS:                       SaaS, Enterprise S/W, AI, Data Analytics, Platforms, Market Places, Consumer Internet
STAGE:                            Early Growth (Post Seed and Series A Round) Between Series A & Series B
GEOGRAPHY:                75% Southern California, 25% Opportunistic
CHECK SIZE RANGE:    $2 - $4mm
GOVERNANCE:              Board Seat

TYPICAL INITIAL INVESTMENT

Value-Add Investing: Active, Hands-On Investment Management

bullet Great Team

bullet Already Raised Capital

bullet Established Revenue & Customer Traction

bullet Proven Product Market Fit

bullet Good Brand Quality

bullet Validated & Sustainable Business Model

bullet Highly Scalable

bullet Large & Growing Addressable Target Market

bullet Recurring Monetization Mechanism

bullet Highly Competitive with Strong Differentiation

bullet Efficient & Accretive Use of Funds

bullet Clear Path to the Next Round

bullet NV Can Make a Difference

 
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