Every venture firm’s looking for many multiples when it comes to returns – but in reality, they expect things to shake out a little differently. Seth DeGroot, a managing partner at boutique Minneapolis investment firm Brightstone Venture Capital, spoke on what the firm’s expectations in potential investment targets – and how startups can avoid pesky problems like, say, overinflated valuations.
The firm has $25 million under management in its current fund, and has deployed about 40 percent of that capital. The firm tends to invest about $250,000 on the low end, and $1 million on the high end – with up to $2.5 million into any one deal. The 25-year-old firm’s focus is in tech, energy and medtech – and of the eight deals its entered in this current fund, medtech startups account for three. It’s looking, in particular, at precision medicine, regenerative medicine, telemedicine and healthIT.
Image: Seth DeGroot of Brightstone Venture Capital
