Understanding Stage 2 Investment Funds: Strategies And Benefits

Stage 2 Capital is a go-to-market venture capital fund that primarily invests in early-stage B2B software companies. The firm combines venture capital expertise with a diverse community of limited partners and go-to-market experts who work with portfolio companies to accelerate revenue growth. The firm was founded in 2018 by Jay Po and Mark Roberge and is based in New York, United States.

In addition to providing capital, Stage 2 Capital leverages its deep sales expertise to help entrepreneurs scale their businesses. The firm has raised multiple funds, including an $80 million Fund II targeting B2B software startups.

Another example of a Stage 2 investment fund is Stage 2 Innovations, a $100 million fund established to accelerate the large-scale commercialization of innovative, patentable technologies in the global market.

Stage 2 Capital's $80M Fund II

Stage 2 Capitals $80M Fund II is the second fund from the Boston-based go-to-market venture capital firm, Stage 2 Capital. The fund was launched in 2021 with plans to invest $80 million in B2B software companies.

The firm was founded in 2018 by Jay Po and Mark Roberge, who are co-founders and managing partners. Po is a former investor at Bessemer Venture Partners, and Roberge was the former chief revenue officer (CRO) at HubSpot, where he scaled annualised revenue from $0 to $100 million. Roberge also wrote a book about his experience, titled "The Sales Acceleration Formula: Using Data, Technology and Inbound Selling to go from $0 to $100 million".

The pair launched their first fund in 2018, raising $15 million, and making 11 investments in late-seed stage to Series A companies. Their second fund, Stage 2 Capitals $80M Fund II, represents a fivefold increase in investment capital. Po and Roberge expect to invest in around 20 companies with an average check size of $2 million to $3 million. They have already made seven investments, including DeepScribe, Arcade, QuotaPath, and Sales Impact Academy.

Stage 2 Capital combines venture capital expertise with a diverse community of over 250 limited partners and go-to-market experts. The firm works closely with each portfolio company, leveraging a deep bench of LPs who are senior executives from companies like Snowflake, Zoom, Salesforce, Smartsheet, and Atlassian.

The firm's unique approach is to educate startups on the right time to scale. Po and Roberge have noticed that many startups scale prematurely because they see certain companies experience massive growth and assume that is the standard. Stage 2 Capital wants to assist companies in changing the world, but they recognise that this will take time.

Stage 2 Capital's approach

Stage 2 Capital is a go-to-market venture capital fund that primarily invests in early-stage B2B software companies. It is the first VC firm run and backed by 800+ go-to-market leaders.

Stage 2 Capital's community supports founders as they achieve product-market fit and prepare to scale revenue. The firm has created scientific, data-driven methodologies to help founders drive sustainable revenue. This includes an 11-week virtual program, the Catalyst Curriculum, which trains founders on executing Stage 2 Capital's Science of Scaling Methodology.

The firm also involves its network in 100% of its investments, which often includes joining a portfolio company as an executive, board member, or advisor. This allows Stage 2 Capital to provide hands-on support to portfolio companies and help them scale their businesses.

Stage 2 Capital's second fund of $80 million represents a five-time increase in investment capital from its first fund. The firm expects to invest in another 20 companies with an average check size of $2 to $3 million.

Stage 2 Capital's network

Stage 2 Capitals Network:

Stage 2 Capitals is a unique and innovative investment network that specifically targets emerging businesses at a crucial stage of their growth and expansion. This network is designed to provide the necessary capital, resources, and support to businesses that have moved beyond the initial startup phase and are now looking to solidify their place in the market. By investing in these 'Stage 2' companies, the fund aims to bridge the gap between early-stage venture capital and later-stage private equity.

The network's primary focus is on companies that have already gained some traction and established a solid foundation. These businesses may have successfully launched their products or services, acquired initial customers, and even achieved profitability. However, they now seek additional capital and strategic support to fuel their next phase of growth, whether it's expanding into new markets, developing new products, or scaling their operations.

Stage 2 Capitals offers a comprehensive approach to investing, providing more than just financial capital. The network connects these emerging businesses with a community of like-minded entrepreneurs, industry experts, and mentors who can offer guidance and support. Through this network, portfolio companies gain access to valuable connections, potential partnerships, and strategic insights that can help them navigate the challenges of growth and increase their chances of long-term success.

The fund's investment strategy is tailored to meet the specific needs of these Stage 2 companies. Investments are typically made in the form of equity or convertible debt, with a focus on minimizing dilution for the founding team. The network also offers flexible funding options, recognizing that each business has unique requirements and milestones to achieve. By providing this customized approach, Stage 2 Capitals aims to empower businesses to achieve their full potential while also offering attractive returns to investors.

Stage 2 Capitals network actively seeks out investment opportunities in a diverse range of sectors, including technology, healthcare, renewable energy, and consumer goods. By spreading its investments across various industries, the network aims to mitigate risk while also capitalizing on emerging trends and innovative business models. This diversification strategy not only benefits the fund's investors but also provides a wealth of knowledge and cross-sector connections that can be leveraged by the portfolio companies.

Stage 2 Capital's second fund

Stage 2 Capital is a go-to-market venture capital fund that primarily invests in early-stage B2B software companies. It is the first VC firm run and backed by 800+ go-to-market leaders. The company combines the strengths of two partners in its investment approach: one with traditional VC/finance experience and the other with GTM operator experience.

The firm was founded in 2018 by Jay Po and Mark Roberge and is based in New York, New York. Po is a former investor at Bessemer Venture Partners, while Roberge was the founding CRO at HubSpot and taught at Harvard Business School. Roberge also wrote a book, "The Sales Acceleration Formula: Using Data, Technology and Inbound Selling to go from $0 to $100 million," based on his observations of founders struggling to build their go-to-market function.

Stage 2 Capital's unique approach combines venture capital expertise with a diverse community of over 250 limited partners and go-to-market experts who work with portfolio companies to accelerate revenue growth. The firm also leverages its deep sales expertise to help entrepreneurs scale their businesses, in addition to providing capital.

Stage 2 Capital's investments

Stage 2 Capitals investments are primarily focused on early-stage B2B software companies. The company is a go-to-market venture capital fund that combines capital with GTM execution expertise to help portfolio companies scale revenue and accelerate growth.

Stage 2 Capital was founded in 2018 by Jay Po and Mark Roberge, and is based in New York, New York. Po and Roberge launched their first fund in the same year, raising $15 million and making 11 investments in late-seed stage to Series A companies. The firm's second fund, launched in 2021, represents a five-time increase in investment capital, with plans to invest $80 million into B2B software companies.

Stage 2 Capital leverages a diverse community of over 250 limited partners and go-to-market experts who work with portfolio companies to accelerate revenue growth. The firm's investment strategy involves sitting "shoulder-to-shoulder" with management teams to operationalize sustainable revenue growth and sales operations. In addition to providing capital, Stage 2 Capital uses its deep sales expertise to help entrepreneurs scale their businesses.

Stage 2 Capital has made 60 investments to date, with their latest investment being in Day.ai as part of their Seed VC on June 20, 2024. The firm has also had 3 portfolio exits, with the latest being BuiltFirst on May 9, 2024.

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