500 Startups, the tech seed fund and startup accelerator founded by former Simply Hired and PayPal executive Dave McClure, is raising a second, $50 million fund to invest in more Internet-based startups.
The firm invests $10,000 to $250,000 in seed funding to startups both directly and through its accelerator program, which is currently working with its fourth class. It also invests in startups at other accelerators, including Y Combinator and TechStars, with a focus on Internet-based companies with simple revenue models and functional prototypes. Areas of interest include consumer e-commerce, mobile and tablet services, cloud services and healthcare/wellness.
This fund follows up the firm’s first $29 million fund, which has enabled it to make more than 250 investments. Ten of those companies have been acquired and 70 have participated in the firm’s accelerator program.
McClure told various media outlets that the second fund would put more focus on investment in international startups. Half of investments would be in Silicon Valley startups, one-fourth in other startups in the U.S., and the other one-fourth in international startups from areas like Brazil, Latin America and Japan.
Founded in 2010, 500 Startups also hosts events and conferences, including the popular Geeks on a Plane tour, an invite-only program that takes startups, investors and executives to explore the startup scenes in international entrepreneurial hot spots. The Mountain View, California firm finds its companies not through an application process but through its mentor network, AngelList, events and social media.
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