[{"id":2363899,"date":"2022-08-01T15:00:28","date_gmt":"2022-08-01T22:00:28","guid":{"rendered":"https:\/\/techcrunch.com\/?p=2363899"},"modified":"2022-08-02T10:23:18","modified_gmt":"2022-08-02T17:23:18","slug":"techs-riskiest-founders-are-getting-a-650-million-bet-from-redpoint-ventures","status":"publish","type":"post","link":"https:\/\/techcrunch.com\/2022\/08\/01\/techs-riskiest-founders-are-getting-a-650-million-bet-from-redpoint-ventures\/","title":{"rendered":"Tech’s riskiest founders are getting a $650 million bet from Redpoint Ventures"},"content":{"rendered":"
For venture investors<\/span>, noise is ironically important. Wading through constant streams of capital-seeking founders and startup pitches may be the hardest part of the job, but it\u2019s also imperative to the success of the same job.<\/p>\n So, what happens if energy around entrepreneurship slows? As the downturn looms, are fewer founders going to take risks? According to Redpoint managing director Annie Kadavy, there will be fewer total companies started in the next year than there were in the last two. And, somewhat counterintuitively, the investor thinks that the looming slowdown is \u201ca great thing.\u201d<\/p>\n \u201cIn an environment where it’s really easy to raise a seed round, it’s really easy to get your first product up as long as you can throw more money at the problem you\u2019re trying to solve\u2026that is a different profile of risk,\u201d she said, \u201cversus it\u2019s really hard to raise money, and I have to build those products because I care so deeply about the problem.\u201d<\/p>\n She added: \u201cI think that the total number of founders we\u2019re going to see will be fewer, but the quality bar is going up.\u201d<\/p>\n Led by Kadavy, managing partner Erica Brescia and general partners Alex Bard and Satish Dharmaraj, Redpoint Ventures announced today that it has closed a $650 million fund to back startups. The investment vehicle is the firm\u2019s ninth early-stage focused fund closed to date, which it will invest in companies from seed through Series B stages. The check size will range between $2 million to $15 million, depending on the company.<\/p>\n