[Good morning everyone, thank you for being here today](source). I’m Ming Yeh, the Founder/General Partner of Upshot Ventures, an early stage fund based in Silicon Valley. Our unique platform-based approach allows us to access and scale early-stage deals effectively [^1^]. In the next 20 minutes, I’ll be sharing our secret sauce on how we scaled 30 unicorns from the seed stage to the unicorn stage [^1^].
**Market Overview**
Before diving into our strategies, let’s get on the same page with a market overview. The public market has been experiencing some uncertainties, but the private market is showing signs of slowdown as well [^1^]. According to Pitchbook data, deal makings have decreased since the peak in 2021, reflecting a more intentional and deliberate approach from investors [^1^]. The private market has become more investor-friendly, allowing investors to take their time in the deal-making process [^1^]. Additionally, the departure of “tourist investors” in Silicon Valley has created a more focused market for deal-making [^1^]. However, it’s important to note that deals are still being done and the numbers are higher compared to pre-pandemic years [^1^].
**Analysis of Valuations**
Now, let’s look at the valuation side of the equation. Late-stage and growth-stage companies are experiencing some decline in valuation, while seed-stage and angel investors are seeing steady valuations [^1^]. Companies in later stages tend to feel the influence of the public market more, which impacts their valuations [^1^]. To avoid tapping into the capital market too early, companies in the growth stage are reducing burn and extending their runway [^1^]. This adjustment in the market dynamics explains why seed-stage valuations remain stable [^1^].
**Why Early-stage Investments Matter**
Given these market dynamics, early-stage investments have become increasingly attractive. Data collected from AngelList shows that significant value is created in the earliest years of a company’s existence [^1^]. Companies that succeed in the early years have more time to enjoy a higher rate of growth, making them valuable returns for investors [^1^]. Investing in year five or later means missing out on the majority of value creation [^1^].
**Real-life Case Study**
To illustrate the impact of early-stage investments, let’s look at a case study from one of our portfolio companies. We invested in the seed stage, and all subsequent funding rounds were oversubscribed. The company’s value has skyrocketed, resulting in a 400+X return [^1^]. By entering early, we maximized the compounded returns and achieved great success [^1^].
In conclusion, early-stage investments offer unique opportunities for venture capital. The ability to create and scale unicorns is evident in our track record at Upshot Ventures [^1^]. Companies like Rippling, where we invested at the seed stage, have seen significant growth and generated exceptional returns [^1^]. By recognizing the value in early-stage investments, we’ve been able to build a strong portfolio of successes [^1^]. If you’re an ambitious founder looking to raise your first institutional round, consider the advantages of early-stage valuations and the potential for exponential growth [^1^].
[](https://website.com)[🌐](https://website.com)
#### References:
[^1^]: [Source Title](https://www.source.com)
Silicon Valley Emerging Venture Capital Opportunities
Ming Yeh, Founder/General Partner – Upshot Ventures
GIPHY App Key not set. Please check settings