According to some statistics, more than 4 out of every 5 startups fail because of poor cash flow. More than a quarter also report an inability to get adequate funding needed for growth and success. The opportunity to access early stage venture capital funding has been a consistent area of concern for many companies. Fortunately, this fact is exactly the niche Baseline Ventures has been filling in since 2006.
Guided by sole owner and founder Steven Anderson, Baseline Ventures targets startups needing “in-between” amounts of early stage venture capital funding. As a result, Baseline Ventures’ success rate in doing so has yielded incredibly bold results.
Filling an Early Stage Venture Capital Void
Baseline Ventures grew out of market necessity. Owner and Founder Steven Anderson had made the decision to launch his own entrepreneurial endeavors in a cybersecurity business—and he needed capital. In fact, he needed about $250,000 in early stage venture capital funding. However, when he explored the VC marketplace, he found few resources at the time. Angel investors offered small amounts of funding, and VC firms usually infused $1 million or more in early stage venture capital. Nothing existed in between.
As a result, the Bold leader launched Baseline Ventures in 2006 with special partner Ron Conway. Conway since left in 2009, leaving Anderson to manage Baseline Ventures solo. Nevertheless, in the process, Baseline Ventures has done incredibly well.
In fact, Baseline Ventures has invested in over 100 startups and has achieved more than 30 successful exits. These accomplishments continue to place Steven Anderson on the Forbes’ Midas List of investors year after year. And it has placed Baseline Ventures among the top early stage venture capital firms in the country.
More than Just Funding—Baseline Ventures Nurtures Success
Many early-stage venture capital funding companies are happy to invest in businesses with great potential. But the level of support each one provides to achieve that success can vary greatly. One of the boldest aspects of Baseline Ventures has been its level of support that it provides startups. In addition to early-stage venture capital, strategic assistance, market introduction, and access to employee growth are often provided. In fact, Steven Anderson prides his ability to not only help entrepreneurs become successful but to also realize their visions.
The impact of this approach to early-stage venture capital funding has been highly rewarding for Baseline Ventures. In an industry where 75 percent of all startups may eventually fail, Baseline Ventures has a 25 percent fail rate. As a result, Baseline Ventures has earned founders and employees over $1.5 billion in earnings since its inception.
Likewise, Baseline Ventures has created more than 4,000 new startup jobs in the process. With a goal of providing essential tools of success, Baseline Ventures provides much more than simply early stage venture capital.
An Impressive Track Record in Early Stage Venture Capital
During the first year or so, Baseline Ventures faced challenges finding ideal startups for early stage venture capital investments. But that changed quickly.
Early tech successes in Parakey and Instagram, both acquired by Facebook, placed Baseline Ventures on the map. Since then, Baseline Ventures has had dozens of successful exits. Startups receiving early stage venture capital from Baseline Ventures have been acquired by some of the most reputable companies around. These companies include E-Trade, eBay, Yahoo, Fox Sports, and Google.
Also, rather than being limited to one industry, Baseline Venture funds startups from various sectors.
Today, the opportunity for entrepreneurs and startups to gain early stage venture capital funding has improved. For Baseline Ventures, this case does not reflect competitive pressure as much as it provides new opportunities. Specifically, Steven Anderson has noted the expanded marketplace has enabled Baseline Ventures to better engage with other investors. This type of approach is beneficial to everyone—including startups in need of early-stage venture capital. This fact is simply yet another reason Baseline Ventures will continue to create bold opportunities for startups in the future
