Bullpen Capital is an early-stage venture fund which makes follow-on investments in start-ups funded by super-angels. Bullpen’s market focus is on the social-mobile web sector (both enterprise and direct to consumer), which is experiencing a new tech boom. The investors benefitting most from this new boom have been the super-angels.
The super-angels have pioneered a new venture-funding model, “lean investing,” which fits the model of social-mobile startups: launch quickly into the Internet and use market feedback to iterate and improve their offering. The lean model usually requires a small follow-on round – smaller than traditional VCs like to fund – to validate the business before seeking a larger round of financing at a much higher valuation. The majority of venture “rocket-ships” do not simply blast off but have this small continuation round to get their model right before lift-off. We call it the Bullpen Round.
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
Bullpen makes the entire financing arc more efficient. By rolling up its sleeves and helping with the period of iteration and experimentation before market validation, it enables traditional VC to focus on financing companies for scaling, providing levels of investment consistent with traditional venture economics.This creates a win for the super angel, the founders, and the traditional VC.