Social Starts maintains two separate sets of funds, which allows both of our funds to have the appropriate focus and move at the appropriate speed to produce maximal returns at each particular stage.
Moment-of-inception Investing: SSLP 1 & SSLP 3
The moment when companies are first formed represents the first opportunity to generate high returns in the startup life cycle. The cost basis at this point is as low as it will ever be and the early investor has the opportunity to establish a deep relationship with management that usually leads to expanded investment opportunities as the company grows.
Done right, moment-of-inception investing can produce extraordinary returns. Social Starts Moment of Inception funds seek to be present at the creation of the most disruptive and valuable businesses in:
SSLP 1, our first Moment of Inception Fund, has a 2012 vintage and has completed its investment phase with 87 investments in 81 companies. SSLP 3, our second Moment of Inception Fund, began investing in July 2014 and has made 63 investments.
Series A Investing: SSLP 2 & SSLP-A
Our Series A funds invest in the subset of Social Starts’ early stage investments that reach their potential because they fulfill a key human need, and have the ability to scale to a position of dominance in their space. They derive significant advantages from our unique moment-of-inception method. The biggest challenge investors face at the Series A is not one of discovery – high-value Series A companies are known in their markets and have established track records of performance they can use to attract investor interest – but, rather, of access.
The primary investment activity of our Series A funds is harvesting the power of pro rata rights from our rising moment-of-inception investments. Secondarily, these funds invest opportunistically in Series A financings led by top-flight venture capital firms in our focus areas, where we were not early investors.