Stage 2 Capital launches $ 80M Fund II targeting B2B software startups – TechCrunch

Boston Market Launch Venture Capital Firm Stage 2 capital launches its second fund with plans to invest $ 80 million in B2B software companies.

The firm’s approach combines venture capital expertise with a diverse community of more than 250 limited partners and market experts working with portfolio companies to accelerate revenue growth.

Firm co-founders Jay Po, a former Bessemer Venture Partners investor, and Mark Roberge, a former HubSpot chief revenue officer, started Stage 2 Capital in 2018.

While at Bessemer, Po told TechCrunch that he met startup founders who weren’t sure how to scale revenue or build a sustainable sales machine. He saw how big the skills gap was in go-to-market (GtM), so in the evenings and on the weekends he would attend sales development classes to better understand what was going on.

At the same time, Roberge was on the faculty at Harvard Business School and advised startups. He also saw the founders struggle to develop their GtM feature, so much so that he gathered a bunch of data points and put them all together in one book, “The Sales Acceleration Formula: Using Data, Technology, and Inbound Sales to Go From $ 0 to $ 100 million. “

Capital Stage 2 Team. Image credits: Stage 2 capital

Po said the company “was virtual before it was great,” which is how it has been able to invest across geographies and set its own pace in terms of curating its network and delivering presentations.

Its goal is to educate startups on the right time to scale. While startups should be growing 100% or 200%, many startups scale prematurely because they see certain companies experience massive growth all at once and assume that’s the way to do it, Roberge said.

“We found that companies launch into that set of goals prematurely and are not ready for it,” he added. “We help them understand when and how fast they can go. They often look at that previous success, but don’t appreciate the context, like who the other company was selling to and the environment at the time. “

Po and Roberge launched their first fund in 2018, raising $ 15 million, and ended up making 11 late-seed stage investments for Series A companies and amassed a 97 LP network of companies like Gong, Procore, Atlassian, Asana, and Drift. The firm wants to help companies change the world, but Roberge said it will take a while and his peers were impressed with the first signs of the investment thesis.

The first fund’s investments include companies from across the United States, including Sendoso, Ocrolus, Gosite, and Reibus.

“Stage 2 Capital stands apart from all other venture capitalists for the expertise and partnership that Jay, Mark and the LPs bring,” said Kris Rudeegraap, Sendoso founder and CEO, in a written statement. “They have exceeded expectations to deliver what they promised and we have increased our income almost 10 times in the short time since they invested.”

The firm’s second fund represents a five-fold increase in investment capital, Po said. He hopes to be able to invest in 20 other companies with an average check size of $ 250,000. The pair have already made seven investments so far, including DeepScribe, Arcade, QuotaPath, and Sales Impact Academy.

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