Today, we are proud to announce the official beta launch of vc-rank.com!
We decided to launch the tool after years of hearing from founders about the challenges of raising capital. The tool leverages a back-end database of VC firm preferences, more exhaustive than any in the industry. New Stack spent 3 years assembling the data, traditionally using it as a tool to help their portfolio companies raise a Series A.
VC Rank was inspired by founders. We continually heard complaints about how hard it is to find the right VCs. So, to better understand the challenges founders face - we surveyed the leaders of over 400 startups. The number one pain point, cited by over 72% of founders, was "identifying the right investment partners". So, we created VC Rank. VC Rank is a tool that instantly delivers a list of the top 60 best-fit VC firms from a database of over 1700 firms. Upon filling out a short series of questions, the founder will receive a customized list based on their startup's stage, sector, and location. -Nate Pierotti
First up: How to find your next venture capitalist.
There's a VC firm called New Stack that focuses on leading first institutional rounds into startups that are not based in San Francisco and New York. As you can imagine, part of its job is helping its portfolio companies — here, in case you wanted to peek — find their next investor.
So, New Stack's Nate Pierotti tells The Exchange, his team crafts next-round plans with their portfolio companies so that the startups can avoid wasting time when they go out to raise a new round. Per Pierotti, these plans are popular with both founders and VCs alike.
A bit ago New Stack asked around 400 founders what their venture pain points are, an exercise that I presume many VCs execute to better understand their market. Something that came out of the study was that many founders wanted help finding their next investor.
In light of the results, New Stack decided to help, putting together a public version of their next-round tool. It's called Venture Rank, and you can check it out here. If you tell it about your startup, it will suggest some funds to talk to, with over 1,700 in its database.
Why bring all this up? Aside from always looking for an excuse to cover Midwest startup activity, we spend a lot of time in this newsletter talking about companies busy leaving their venture capital days behind them. Here was a chance to talk about a resource that founders still in the venture mix can actually use.