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500 Startups takes crowdfunding route on new $100M fund

posted Jun 27, 2014, 11:14 PM by Siamak Ebarhimi
500 Startups is making a public appeal as it raises a new $100 million fund.CrowdFunding advertizing

The Mountain View accelerator led by founding partner Dave McClure has tapped New York-based crowdfunding startup SeedInvest to help it vet accredited investors and streamline the process."We first looked at doing this last year when the JOBS Act went into effect, but we wanted to take some time and understand it fully before we went ahead," McClure told me on Thursday. "We have a pretty big social media and online presence, and it seemed we wouldn't be taking full advantage of that without taking this route."CrowdFunding marketing

Venture funds previously were barred from talking publicly about their fundraising activities, but the JOBS Act allows them to do so now if they file for an exemption.Kickstarter Marketing

"I still expect that the majority of the new fund will be raised from traditional sources and means," McClure said.

The new fund is 500 Startups' biggest to date, following $29 million in its first fund and $44 million in its second one.

"We invested in 250 companies in the first fund and 325 with the second," McClure said. "We will probably invest in closer to 400 companies with this one."Indiegogo Marketing

He said about 50 percent of the investments from the new fund will likely be in companies in the 500 Startups accelerator and about 50 percent will be in other seed investments. The mix before was about 25 percent in accelerator companies and 75 percent in other seed fundings.

Another push by McClure has been to back companies in Latin America, Asia and the Middle East, so he expects that about 25 percent of the companies backed will be based overseas.crowdfunding websites

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By David Khorram