NSV I: Strategic Fund of Funds

Many large corporations invested in Silicon Valley venture capital firms in the past to gain strategic insights without success. While it is true that venture capital firms have access to valuable information regarding the latest startup scene, the traditional venture capital model is not designed to provide corporations with strategic insights and information. The primary objective of venture capital is instead to maximize their financial ROI. Thus, many large corporations have felt frustrated with the lack of strategic output from their investments.

To solve this issue, NSV created a unique “strategic fund-of-funds” to provide large corporations not only an opportunity to invest in Silicon Valley’s top-tier VCs and super angels, but also to gain insights that can guide their future new business creation strategies. NSV will tap into the deal flow of the VCs/super angels, utilize its Silicon Valley network, and provide strategic consulting services to its corporate investors.

NSV Fund of Funds Model

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Unlike the traditional venture capital model, NSV funds are structured to provide strategic information services to their LPs.

NSV Fund Strategic Information Services

(a) On-going information feed
  • Super angel deals
  • Other early stage deals
(b) LP-specific Report
  • Selective information sharing based on LP issues
  • Trend in LP’s industries of interest
(c) LP-specific Strategic Advisory
  • “Next Big Thing” for LP
  • Deep discussions with LP on growth opportunities
  • Creation of strategic partnership/M&A plans
(d) Transaction Support on Partnership/M&A
NSV I currently invests in Bullpen Capital.

About Bullpen Capital

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. That’s where Bullpen comes in.

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 its sleeves and helping with the period of iteration and experimentation before market validation, it enables traditional VCs to focus on financing companies for scaling, providing levels of investment consistent with traditional venture economics. This creates a win for super angels, founders, and traditional VCs.
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