The world of Venture Capital (VC) has been rapidly changing in recent years. While many investors are chasing large, high-profile funding rounds and cutting-edge technology deals, there are still some VC firms that are doubling down on overlooked founders. One such firm is Cherryrock Capital, where Stacy Brown-Philpot is leading the charge.
Cherryrock Capital is a startup that has been in operation for over 25 years. During this time, they have invested in a wide range of companies, from early-stage startups to established businesses. What sets them apart from other VC firms is their focus on smaller investments and an emphasis on finding hidden gems.
According to Stacy Brown-Philpot, the founder and CEO of Cherryrock Capital, investing in overlooked founders is not just about making money – it’s also about creating a more diverse and inclusive business environment. “When we invest in underrepresented founders,” she says, “we’re not only supporting their dreams, but we’re also helping to create a more equitable industry.”
This focus on diversity and inclusion has led Cherryrock Capital to make some unique investments over the years. For example, they were one of the first VC firms to invest in Black-owned startups. They have also invested in companies founded by women and members of the LGBTQ+ community.
One such company is Figma, a design tool that was co-founded by three women – Kate Brown, David Friedberg, and Tristan Burke. In 2018, Cherryrock Capital led a $100 million funding round for Figma, making it one of the largest investments in a startup founded by women to date.
Another company is Bumble, which was started by Whitney Wolfe Herd. Bumble initially focused on helping women make connections with other women, but has since expanded into other areas such as dating and personal safety apps. Cherryrock Capital led a $100 million funding round for Bumble in 2019, making it one of the largest investments in a female-founded startup.
In addition to investing in diverse founders, Cherryrock Capital is also focused on supporting companies that are disrupting traditional industries. For example, they invested in Instacart, an online grocery delivery service that has revolutionized the way people shop for groceries. They also invested in Robinhood, a financial services platform that has made it easier for people to invest in stocks and other assets.
As the VC landscape continues to evolve, Cherryrock Capital is staying true to its roots by focusing on overlooked founders and investing in companies that are disrupting traditional industries. By doing so, they are not only creating a more diverse and inclusive business environment, but also helping to drive innovation and change the face of Silicon Valley for the better.
Stacy Brown-Philpot has invested in four startups: Figma, Bumble, Instacart, and Robinhood. Each startup was founded by a different group of founders and each received a unique amount of funding: $100 million, $150 million, $200 million, or $250 million.
From the information given in this blog post, can you figure out which investor (Cherryrock Capital) led the investment round for which startup?
1. The startup that Figma was founded by received less funding than the startup led by Cherryrock Capital.
2. Bumble’s funding is double what Robinhood got.
3. Instacart didn’t receive $150 million.
4. The company with the $200 million investment was not founded by Whitney Wolfe Herd (Bumble) or Kate Brown (Figma).
5. The startup led by Cherryrock Capital did not get the least amount of funding, nor the most.
From Clue 4, Figma’s founders didn’t receive the highest funding ($250 million), so they must have received $200 million because it is less than the $100 million given to the startup led by Cherryrock Capital (Clue 1).
Since Bumble’s funding is double that of Robinhood (Clue 2) and Figma has already been established to get $200 million, Robinhood and Bumble must have gotten equal amounts, which should be less than $250 million.
From Clue 3, Instacart didn’t receive $150 million. Since Figma ($200M) and Robinhood/Bumble ($100M or $50M) can’t get the $150M because they are not the highest in funding, only the startup led by Cherryrock Capital could be in that amount ($150M), which contradicts Clue 5 (since it is the highest). Therefore, Figma received the maximum of its fund, $250 million.
By elimination, Robinhood/Bumble must have received $50 million and Instacart got the remaining amount, $100 million.
The startup led by Cherryrock Capital ($150M), then, must be the only one left, which is Bumble (founded by Whitney Wolfe Herd). So, the last startup, Robinhood, was founded by David Friedberg. And because Figma and Robinhood are already associated with their funding amounts, the startup founded by Kate Brown must have received $200 million.
Answer:
Cherryrock Capital led the investment round for Bumble.
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