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Bessemer Venture Partners

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Overview

Bessemer Venture Partners (BVP) is a renowned venture capital and private equity firm headquartered in San Francisco, with additional offices in India, Israel, and the United Kingdom. With a rich history dating back to 1911, BVP has evolved into a prominent player in the investment landscape. Their expertise and success have earned them recognition, including being ranked as the 8th largest venture capital firm by total fundraising over a recent five-year period, as reported by Venture Capital Journal in 2022.

Founded by Henry Phipps Jr., co-founder of Carnegie Steel, Bessemer Trust initially managed the Phipps family's assets. In 1974, the firm opened its doors to external investors, enabling Bessemer Securities to pursue more diverse and adventurous investment strategies, including venturing into private technology and medical companies. As a result, Bessemer Securities established an office in Silicon Valley in 1975, aiming to tap into the burgeoning technology scene.

Over time, Bessemer Securities' venture capital investment arm emerged as an independent entity known as Bessemer Venture Partners. Although Bessemer Securities remains the parent company, providing vital funding and support, BVP operates autonomously. In the late 20th century, BVP experienced growth and expansion, solidifying its investment team with seasoned venture capital specialists and managing substantial assets.

Embracing globalization, BVP expanded its investments beyond the United States in 2000, venturing into regions such as India, Israel, Latin America, and Europe. Notably, they maintain a section on their website called Anti-Portfolio, where they candidly share missed investment opportunities, including prominent companies like Apple Inc., eBay, Gateway, Inc., and Blue Nile.

In 2007, BVP achieved a significant milestone by closing Bessemer Venture Partners VII, their first fund that involved external investors. This marked a pivotal moment in their history, further diversifying their capital sources. Continuing their pursuit of new opportunities, BVP established a private equity team in 2021, which later became BVP Forge, ultimately closing their inaugural buyout fund in September 2022. With each development, BVP has consistently demonstrated their adaptability, commitment to innovation, and dedication to delivering value to their investors and portfolio companies.

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Exploring Careers?

For individuals interested in venture capital roles, Bessemer Venture Partners offers exciting career opportunities. Working at Bessemer Venture Partners provides exposure to cutting-edge technologies, emerging markets, and the chance to work closely with talented entrepreneurs. The firm typically looks for individuals with a strong background in technology, finance, or entrepreneurship. Roles at Bessemer Venture Partners may include investment associates, analysts, or partners, depending on the level of experience. Joining the team at Bessemer Venture Partners offers the opportunity to be part of a renowned venture capital firm and contribute to the growth and success of groundbreaking startups.

Investment Focus

The investment thesis of Bessemer Venture Partners revolves around backing innovative companies with disruptive ideas and strong growth potential. They seek to invest in startups that operate in sectors such as cloud computing, consumer internet, enterprise software, healthcare, and financial services, among others. Bessemer Venture Partners looks for companies that have a unique value proposition, a strong market opportunity, and a talented founding team. They often take an active role in the companies they invest in, providing guidance, mentorship, and connections to help them achieve their growth objectives.

Portfolio

Bessemer Venture Partners has an impressive portfolio of companies spanning multiple industries. They have made notable investments in companies such as Pinterest, LinkedIn, Shopify, Twilio, and DocuSign, among many others. These investments have proven to be highly successful, with several portfolio companies going on to become industry leaders and achieving significant growth and valuation milestones. The firm's track record demonstrates their ability to identify promising startups and provide them with the necessary capital and support to scale and succeed.

BVP has invested in many different companies. According to its website, its most notable investments include: Bright Health, LinkedIn, PagerDuty, Pinterest, Rocket Lab, Shopify, Toast, Inc., Twilio, Twitch, Wix.com and Yelp.[16]

Team

The investment thesis of Bessemer Venture Partners revolves around backing innovative companies with disruptive ideas and strong growth potential. They seek to invest in startups that operate in sectors such as cloud computing, consumer internet, enterprise software, healthcare, and financial services, among others. Bessemer Venture Partners looks for companies that have a unique value proposition, a strong market opportunity, and a talented founding team. They often take an active role in the companies they invest in, providing guidance, mentorship, and connections to help them achieve their growth objectives.

Frequently Asked Questions

What is Bessemer Venture Partners' investment focus?

Bessemer Venture Partners focuses on investing in innovative startups with disruptive ideas and strong growth potential. They seek out companies that operate in sectors such as cloud computing, consumer internet, enterprise software, healthcare, and financial services, among others. By targeting these areas, Bessemer Venture Partners aims to identify and support startups that have the potential to become industry leaders and drive significant market change.

Bessemer Venture Partners focuses on investing in innovative startups with disruptive ideas and strong growth potential. They seek out companies that operate in sectors such as cloud computing, consumer internet, enterprise software, healthcare, and financial services, among others. By targeting these areas, Bessemer Venture Partners aims to identify and support startups that have the potential to become industry leaders and drive significant market change.

What sectors or industries does Bessemer Venture Partners typically invest in?

Bessemer Venture Partners typically invests in a wide range of sectors, including technology, software, healthcare, and financial services. Within technology, they have shown interest in areas such as artificial intelligence, machine learning, cloud computing, cybersecurity, and mobile applications. They are also actively involved in the consumer internet space, investing in companies related to e-commerce, social media, and digital media platforms.

How much capital does Bessemer Venture Partners typically invest in early-stage startups?

While the specific investment amount varies depending on the opportunity and the stage of the startup, Bessemer Venture Partners is known for making investments ranging from a few hundred thousand dollars to several million dollars in early-stage startups. They have the capacity to provide both seed funding for promising early-stage companies and follow-on investments to support their growth in subsequent funding rounds.

What is Bessemer Venture Partners' typical investment stage?

Bessemer Venture Partners is active across different investment stages, including seed, early-stage, and growth-stage investments. They are known for their early-stage investments in promising startups, but they also participate in later-stage funding rounds for companies that have already achieved significant traction and are poised for rapid growth.

What is the average duration of their investment holding period?

The average duration of Bessemer Venture Partners' investment holding period can vary based on several factors, including the specific needs and trajectory of the portfolio company. However, venture capital investments typically have a time horizon of several years, ranging from five to ten years or more. During this time, Bessemer Venture Partners works closely with their portfolio companies, providing guidance, support, and resources to help them navigate challenges and maximize their growth potential.

What is the geographic focus of Bessemer Venture Partners' investments?

Bessemer Venture Partners primarily focuses on investments in the United States. However, they also have a global perspective and have made investments in other regions, including Europe, Israel, and Asia. While their investments have a global reach, they often prioritize opportunities in their core markets, where they have extensive networks and expertise.

How involved is Bessemer Venture Partners in the companies they invest in?

Bessemer Venture Partners takes an active approach to their investments. They aim to be more than just a source of capital and actively support their portfolio companies throughout their journey. This involvement can take various forms, including providing strategic guidance, leveraging their network to connect portfolio companies with relevant industry experts, facilitating partnerships, and assisting with recruitment efforts. Bessemer Venture Partners strives to be a valuable partner to their portfolio companies and help them overcome challenges and achieve long-term success.

What value-add does Bessemer Venture Partners bring beyond capital?

Bessemer Venture Partners brings more than just capital to the table. They offer deep industry expertise, access to a vast network of contacts, and a wealth of operational knowledge gained through years of experience in the venture capital landscape. They provide guidance in areas such as go-to-market strategies, product development, scaling operations, talent acquisition, and corporate governance. Bessemer Venture Partners' value-add extends beyond financial support and aims to empower their portfolio companies with the resources and insights necessary to thrive in their respective markets.

What is the size of Bessemer Venture Partners' fund?

The size of Bessemer Venture Partners' fund can vary between different funds they manage. As a venture capital firm with a long history, they have managed multiple funds over the years, each with its own size and investment capacity. The specific size of their current fund can be obtained by referring to their website or contacting Bessemer Venture Partners directly.

Does Bessemer Venture Partners lead investment rounds or participate as a co-investor?

Bessemer Venture Partners takes on both leading and co-investor roles in funding rounds. As a lead investor, they may take a more prominent position in shaping the investment terms and providing guidance to the startup. However, they also actively participate as a co-investor alongside other venture capital firms, demonstrating their confidence in the startup and contributing to a well-rounded investment syndicate.

What is Bessemer Venture Partners' due diligence process like?

Bessemer Venture Partners conducts a comprehensive due diligence process when evaluating potential investment opportunities. This process involves a thorough examination of various aspects of the startup, including its market potential, technology, team, competitive landscape, financials, and legal considerations. They may also engage in discussions with the founders, conduct reference checks, and analyze the startup's growth projections and scalability. The due diligence process is designed to assess the startup's viability, growth potential, and alignment with Bessemer Venture Partners' investment thesis.

How long does the investment decision-making process usually take?

The investment decision-making process can vary depending on factors such as the complexity of the opportunity, the stage of the startup, and the level of due diligence required. Typically, it can take several weeks to a few months for Bessemer Venture Partners to complete their evaluation and make an investment decision. However, it's important to note that the timeline can vary and may be influenced by external factors, internal processes, and the availability of key stakeholders involved in the decision-making process.

Can Bessemer Venture Partners provide examples of successful exits or liquidity events they have facilitated?

Bessemer Venture Partners has a strong track record of successful exits and liquidity events. They have been involved in numerous initial public offerings (IPOs), mergers and acquisitions (M&A), and other exit events with their portfolio companies. Some notable examples include Pinterest, LinkedIn, Shopify, Twilio, and DocuSign, which have achieved significant market success and generated substantial returns for Bessemer Venture Partners and their investors. These success stories serve as evidence of Bessemer Venture Partners' ability to identify promising startups and support their growth until they reach maturity.

Are there specific criteria or requirements that a startup should meet to be considered for investment?

While Bessemer Venture Partners does not have rigid criteria set in stone, they typically look for certain key attributes in startups they consider for investment. These include a strong founding team with relevant expertise, a differentiated and scalable business model, a large market opportunity, and a compelling value proposition. They often seek startups that have demonstrated early traction, with validated product-market fit and a clear plan for growth. While meeting these criteria increases the chances of being considered for investment, each opportunity is evaluated on a case-by-case basis, and Bessemer Venture Partners takes a holistic view of a startup's potential.

Does Bessemer Venture Partners prefer to invest in solo founders or teams?

Bessemer Venture Partners recognizes the value of both solo founders and founding teams. While they have invested in companies with solo founders in the past, they also appreciate the benefits of diverse and complementary teams. The strength of the team, their ability to execute on the vision, and their alignment with Bessemer Venture Partners' investment thesis are more critical factors in the decision-making process than the number of founders alone.

Does Bessemer VenturePartners have any restrictions on follow-on funding?

Bessemer Venture Partners does not have strict restrictions on follow-on funding for their portfolio companies. They understand that startups often require additional capital to fuel their growth and may participate in subsequent funding rounds to support their portfolio companies' financing needs. Bessemer Venture Partners evaluates follow-on investments based on the progress and potential of the company, market conditions, and the overall investment strategy of the firm.

How often does Bessemer Venture Partners make new investments and add new companies to their portfolio?

Bessemer Venture Partners actively seeks new investment opportunities and continuously adds new companies to their portfolio. The frequency of new investments can vary based on market conditions, the availability of compelling opportunities, and the pace at which Bessemer Venture Partners identifies startups that align with their investment thesis. As an established venture capital firm, they have a steady deal flow and make investments on an ongoing basis.

Can Bessemer Venture Partners provide references from founders of their portfolio companies?

Bessemer Venture Partners has a strong network of founders and entrepreneurs within their portfolio companies. While it may be subject to individual circumstances and confidentiality agreements, they may be able to provide references or facilitate conversations with founders who have worked with them in the past. These conversations can provide valuable insights into the level of support, guidance, and overall experience that portfolio companies have received from Bessemer Venture Partners.

Are there any specific milestones or metrics that Bessemer Venture Partners typically look for in a startup?

Bessemer Venture Partners considers a variety of milestones and metrics when evaluating startups. These can include factors such as revenue growth, customer acquisition, user engagement, market size, product-market fit, and the competitive landscape. While the specific metrics may vary depending on the industry and stage of the startup, Bessemer Venture Partners looks for evidence of traction, a scalable business model, and a clear path to achieving sustainable growth and market leadership.

What is the best way to get in touch with Bessemer Venture Partners and initiate the fundraising process?

To get in touch with Bessemer Venture Partners and initiate the fundraising process, it is best to visit their website and explore their contact information. They often provide guidelines for entrepreneurs seeking funding, including a dedicated email address or online submission form for initial introductions. Startups can typically reach out to Bessemer Venture Partners through these channels, provide an overview of their business, and express their interest in exploring investment opportunities. While it is important to note that the process may involve multiple stages and discussions, taking the initial step of reaching out via the recommended channels is the best way to engage with Bessemer Venture Partners.

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