Flagship Ventures operates through two synergistic units: VentureLabs® which invents and launches transformative companies, and Venture Capital, which finances and realizes innovative early-stage companies.
Early Stage Venture Investing: In addition to its proprietary deal flow through Flagship VentureLabs, Flagship’s Venture Capital unit identifies investment opportunities in newly started ventures. The team selects the best few of these opportunities for an initial investment that can be as small as a $500,000 seed and up to $10 million in a syndicated Series A investment. The Firm typically leads / co-leads these financings, takes a board seat, and focuses on partnering with other leading venture firms and strategic partners that are appropriate for the opportunity and with whom we are highly networked. The disciplined use of structured financings and tranches is leveraged to ensure appropriate focus on early value creation and capital efficiency which are key to success in the early stage of a start up’s lifecycle. We add value by becoming intimately involved with the many challenges faced by our portfolio companies from building out the team, helping clarify technology and business plans, to introducing our companies to key strategic partners and other investors.
Later Stage Value Investing: Flagship Ventures selectively identifies later-stage value investments as opportunities in the current capital-constrained environment. Flagship actively sources and evaluates companies that are more advanced in their product development and/or market entry status but still require additional capital and strategic engagement to realize their full potential. The Firm finds projects that are near a major inflection point by leveraging its broad network and its ability to recognize technology and market potential. It then applies its strategic and operational experience and skills, coupled with a disciplined financing approach to rapidly unlock the value and generate substantial returns.
We Actively Look For The Best Entrepreneurs: While the Flagship VentureLabs unit is the entrepreneur for our internal Newcos, the Flagship Venture Capital unit is additionally focused on identifying and partnering with the world’s best entrepreneurs to finance and build the next set of industry-changing companies. Collectively, our decades of operating at the intersection of entrepreneurship and venture capital, and having worked with hundreds of great entrepreneurs, gives us an appreciation for the challenges faced by a start up, and the skills and passion needed to work with them and help drive their success.
Investment Amounts: Flagship Ventures’ initial investments generally range from $500,000 to $5 million. During a a portfolio company’s lifecycle, the Firm typically invests between $7 million to $15 million as part of a strong syndicate of co-investors and plays the role of lead or co-lead investor. We always target 20% to 30% equity ownership, and slightly less in later stage companies. Rather than investing formulaically to maximize capital deployment, we work with each management/founding team to determine the optimum initial amount for each investment that keeps the team focused on maximizing value creation and that minimizes dilution. Once invested, the Firm’s partners engage actively in company building through their roles as board members and by deploying the Firm’s network towards the company’s particular needs.
Let Us Hear From You: Please reach out to the appropriate member of the Flagship Team, or better yet, have someone we both know make a mutual introduction. Let us know what you are passionate about, why you believe you can be successful and how we can help make your dream a reality! Crispness and clarity in your thoughts is a plus, as is passion and commitment.