Announcing Costanoa’s Opportunity Fund
I recently detailed the reasons why boutique firms have uniquely compelling value propositions for startup founders — we bring focused capabilities, specialized expertise, and a deep emotional commitment that are hard to find at multi-stage, multi-sector funds (also known as the bulge bracket firms).
However, like any product manager, I also recognize that there are always tradeoffs in design choices. The biggest challenge of our focused strategy lies in being able to contribute meaningfully to the later stage rounds of our existing portfolio companies.
Because we feel it’s important to stand behind our companies as they grow, we took a page out of the playbook of our friends at Foundry and Union Square Ventures and raised an Opportunity Fund. This new fund enables us to invest further in our fastest (and most efficiently) growing portfolio companies as they hit the growth stage. As a result, it allows us to maintain our existing early stage strategy but also extend our value proposition to founders by providing capital across the entire lifecycle of their companies.
We’d like to thank our LPs for their trust and support and to our founders for letting us be part of their journey as we help them turn their visions into reality. Onward!
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