Aligned Partners, a VC Firm That Does Not Chase Unicorns

More private companies are valued at $1 billion or more than at any time in history, and many venture capital firms are chasing investments in what they hope will be the next unicorn on that list.

One firm, Aligned Partners, is taking a different tack. Rather than pouring money into young companies and hoping they can spend their way into growth, the four-year-old firm invests small amounts of money into companies that use capital as efficiently as possible.

The goal is to have companies exit, either by going public or more likely by getting acquired, on less than $10 million in funding . . .

“Most VCs are trying to go for billion-dollar valuations, [but] the pressure on entrepreneurs and companies is immense, and that pressure, I believe, causes those companies to make a lot more mistakes,” said Full Circle CRM Chief Executive Bonnie Crater, who said she chose Aligned over more conventional venture firms after Ms. Jahic asked why she’d put a chart in her presentation showing that Full Circle would be a billion-dollar company.

“I thought that was the only way to do it,” Ms. Crater said. “I think their model will be successful.”

Read the full article.