PROOF STANDS FOR PRO-RATA OPPORTUNITY FUND.
We invest strategic capital alongside select early stage VC firms, to maximize upside in their best performing companies.
Venture capital firms investing in early stage companies typically negotiate ‘pro-rata investment rights,’ allowing them to maintain ownership in subsequent rounds of funding as they grow. Since early stage VCs invest across a broad swath of portfolio companies, over time, they inevitably run out of capital to maintain their pro-rata ownership in their best-performing companies. When pro-rata is surrendered, board seats and the right to invest in future rounds are at stake.
Through our investments, we allow our network partner VCs to maintain their influence on the board, preserve their position in the cap table and optimize returns in companies experiencing meteoric growth.
SHARED ECONOMICS, SHARED HISTORY.
Pro-rata rights offer valuable investment opportunities. ‘Opportunity funds’ can give Limited Partners access to those unused pro-rata rights in marquee portfolio companies. Traditionally though, these captive opportunity funds are limited to the pool of portfolio companies that are part of the VC firms who raised them.
At PROOF, we have assembled a network of 30 seed and early stage firms with more than 1,500 active investments across their portfolios. Our VC partners are concentrated in California, and are well represented in New York City, Boston, Washington DC, Atlanta and Seattle. We have invested together with most of our partner firms for years. And, our network of firms have invested in Uber, Nest, Google, Zappos, Bonobos, Moda Operandi, Warby Parker, Trulia, and Ancestry.com, among many other great companies.
SEASONED INVESTORS DRIVING ALPHA.
Before PROOF, we were co-founders of early stage venture capital firms that collectively raised over $1 Billion of capital and invested in over 200 companies. We introduced our first opportunity fund in 2004. Opportunity Fund I outperformed the market with investments like Mobile365 (acquired by Sybase for $450M); DivX (went public at $750M) and GlobalLogic (acquired by Apax). In 2014, we raised Opportunity Fund II. Their success inspired us to design and launch PROOF.
OWN MORE OF YOUR WINNERS.
As Limited Partners in VC firms seek direct investment opportunities to improve their fund performance, we provide the way to directly access a diversified portfolio of the best companies, from a qualified network of top performing VC firms in the United States.