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Watertower Ventures is a venture capital firm founded in 2017 by former entrepreneurs, based in Los Angeles, California, with an additional office in New York. The firm has raised a total of $50 million in its second fund, focusing on early-stage investments in transformative sectors. Watertower Ventures aims to build strong relationships with entrepreneurs who are reshaping industries through innovative technologies.
The firm positions itself as an 'outsourced corporate development engine,' leveraging deep connections with major tech companies such as Google, Apple, and Microsoft to provide strategic support to its portfolio companies. With a portfolio of 47 companies, Watertower Ventures has established itself as a key player in the early-stage investment landscape.
Notable milestones include the acquisition of portfolio company Wondery by Amazon, showcasing the firm's ability to identify and support high-potential startups. The firm primarily invests in the United States, targeting sectors such as AI, fintech, media, SaaS, and consumer technology.
Watertower Ventures specializes in early-stage investments, particularly in pre-seed and seed funding rounds. The firm typically leads or co-leads these rounds, with initial check sizes ranging from $500,000 to $2 million, and the potential to invest up to $5 million per company. Their investment strategy emphasizes sectors such as financial technologies, AI enterprise optimization, media evolution, and AI consumer transformation.
In financial technologies, Watertower Ventures seeks companies that are developing next-generation capital markets infrastructure powered by AI. For AI enterprise optimization, the firm looks for startups that enhance efficiency and scale through automation. The evolution of media is another focus area, where they invest in companies redefining how individuals create, own, and monetize intellectual property. Additionally, they are interested in AI consumer transformation, targeting innovations in commerce and retail automation.
Watertower Ventures has a diverse portfolio of 47 companies, with notable investments including:
Derek Norton — Founder & Managing General Partner; he is a serial entrepreneur and venture capitalist with extensive experience in early-stage investments.
Jeremy Milken — General Partner; he joined Watertower Ventures in 2020 and brings a wealth of knowledge in venture capital and startup growth strategies.
To pitch Watertower Ventures, founders should use the contact form on their website. It is important to include a comprehensive pitch deck that outlines the business model, market opportunity, and financial projections. The firm prefers to see a clear articulation of the startup's vision and how it aligns with their investment focus.
Response times may vary, but founders can expect to hear back within a few weeks. Warm introductions are encouraged, as they can facilitate a more favorable review of the pitch.
In 2020, Watertower Ventures closed its second fund at $50 million, aiming to invest in approximately 35 companies. The firm has made 47 documented investments to date, with a moderate pace of deployment, averaging about two new investments per year.
Notable portfolio activity includes the acquisition of Wondery by Amazon, highlighting the firm's ability to identify and support high-potential startups in the media sector.
What are Watertower Ventures' investment criteria?
Watertower Ventures invests in early-stage companies, particularly in the pre-seed and seed stages. They focus on sectors such as AI, fintech, media, SaaS, and consumer technology. The firm typically leads or co-leads funding rounds with check sizes ranging from $500,000 to $2 million.
How can I pitch to Watertower Ventures?
Founders can pitch their startups through the contact form available on the Watertower Ventures website. It is advisable to include a detailed business plan and financial projections in the pitch deck.
What makes Watertower Ventures different from other investors?
Watertower Ventures positions itself as an 'outsourced corporate development engine,' leveraging deep relationships with major tech firms to provide strategic support and insights to portfolio companies. This unique approach helps startups navigate early-stage growth challenges effectively.
What is the geographic focus of Watertower Ventures?
The firm primarily invests in companies based in the United States, targeting innovative startups that are transforming various industries.
What is the typical follow-on investment behavior of Watertower Ventures?
Watertower Ventures is known for its active involvement in the growth of its portfolio companies, often providing follow-on investments as companies progress through their funding stages.
What is the fund size and how many companies does Watertower Ventures invest in?
Watertower Ventures has a fund size of $50 million and has invested in a total of 47 companies to date.
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