Early Stage Fund: Early stage venture funds typically focus on companies that are in the early stages of their development, such as preseed and seed stage startups. Early stage venture funds typically invest smaller amounts of capital than later stage venture funds, and they often focus on businesses that are in industries with high growth potential. Early stage funds invest in companies based on their business model and their team, rather than their financials. The best skills to have as an early stage VC is having a great network, operating experience and being able to help founders scale. Many early stage VC profiles come from product, founder, operating and accelerator backgrounds. Well known early stage VC funds include A16z, Sequoia, and First Round Capital.
Late Stage Fund: Late stage venture funds generally focus on companies that are further along in their development, such as those that are in the growth or expansion stage. Late stage venture funds typically invest larger amounts of capital than early stage venture funds, and they often focus on companies that are in industries with more mature growth potential. Late stage funds analyze companies based on financials, revenue and traction. Much of the talent pipeline comes from Investment Banking and Private Equity as the skills needed is financial modeling heavy. Well known late stage VC funds include Tiger Global, IVP & Insight Partners.