Apart from the network benefits and having a namebrand behind them, does having a smart money investor mean you raise more? We already know that mutual funds favor certain investors so we used CB Insights data to analyze whether having certain smart money investors impacts round size.
When we use CB Insights data to analyze the median round size for US tech companies in the last two years, we see that rounds with smart money investors are at least double the size of rounds where they are not included. The only exception being Series A where the gap is not quite as wide.
What are some other reasons smart money rounds are larger? Leave your comments below.
The smart money investors we analyzed include:
- Accel Partners
- Andreessen Horowitz
- Battery Ventures
- Benchmark Capital
- Bessemer Venture Partners
- Felicis Ventures
- First Round Capital
- Floodgate Fund
- Founders Fund
- Google Ventures
- Greylock Partners
- Index Ventures
- Khosla Ventures
- Kleiner Perkins Caufield & Byers
- New Enterprise Associates
- Redpoint Ventures
- Sequoia Capital
- Spark Capital
- Union Square Ventures
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This report was created with data from CB Insights’ emerging technology insights platform, which offers clarity into emerging tech and new business strategies through tools like:
- Earnings Transcripts Search Engine & Analytics to get an information edge on competitors’ and incumbents’ strategies
- Patent Analytics to see where innovation is happening next
- Company Mosaic Scores to evaluate startup health, based on our National Science Foundation-backed algorithm
- Business Relationships to quickly see a company’s competitors, partners, and more
- Market Sizing Tools to visualize market growth and spot the next big opportunity