500 Startups: Scaling Early-Stage Investing Harvard Case Solution & Analysis

This case evaluates the 500 startups’ investment strategy. Dave McCulre, the founder of 500 Startups, an initial investment firm, was an outspoken personality in Silicon Valley. He felt the lack of growth of innovation by the venture capital industry as compared to the increasing changing environment. It has become easier for investors to write smaller and smaller checks due to the declining cost of starting a venture. Along with this, the way out options have also become easy for them, which enhanced the earlier returns possibility than the past, however at lower valuations.

Customer acquisition platforms have created a significant disruption for traditional businesses by Startups. At the McClure concluded that investment opportunities abound foreign in quickly developing markets. In spite of the fact that not everyone in Silicon Valley joined the routes of ideas presented by McClure but he intends to transform 500 Startups to the first “guild-based” international investment firm.

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