Illuminate Ventures

First institutional money for B2B software founders

Illuminate Ventures says its focus is on finding, funding and accelerating founders who are building enterprise and business-to-business software companies, with a leaning toward cloud and mobile computing. It puts its attention on SaaS applications and on platforms that use data and artificial intelligence to deliver a quick return for customers. The firm looks for innovative ideas led by talented teams, often pairing diverse perspectives with new technology to solve old problems in new ways.

The Series Seed gap

Illuminate is typically a start-up's first institutional investor, though it can also suit an established company seeking its first outside equity. Its sweet spot, in its words, is the Series Seed round, filling the space between angel capital and the larger rounds of traditional venture firms. When the timing is right, it works with large-scale firms for the following round, while saying it likes lean companies that keep their flexibility in the early years. It leads Series Seed investments and brings resources it hopes will turn start-ups into market leaders.

Track record

With three funds under management, the firm has been an early investor and board member in companies such as BrightEdge Technologies, an SEO platform; Xactly Corporation, a sales performance software company later listed on the New York Stock Exchange; Contentstack, a headless CMS platform; and Coupang, the Korean e-commerce business, also listed in New York. The older site added that more than half of its new investments came by referral from earlier portfolio founders and advisors, and that over more than ten years of early-stage investing it had seen mergers and acquisitions and public listings.

How the firm sets itself apart

Its description of itself comes in four statements. The first is that it is not a tourist: everyone on the investing team and among its advisors has worked as an operator, adviser or investor in enterprise software, and the investments rest on a thesis built on relevant experience and its own research. The second is that it does not follow the herd, since great opportunities come in different packages and a broader approach to deal flow gives access to all the best teams. The third is that it is made up of doers, because the partners have been founders themselves and say they step in to help or find someone who can. The fourth points to its results.

Who should talk to it

The firm closes with an invitation to entrepreneurs who want to reinvent business as we know it.

Illuminate Ventures invests in founders building business-to-business cloud and mobile computing companies. Its focus is SaaS applications and products that use data and mobility to improve business results.

Services

• Seed investment: its main area is Series Seed rounds, sitting between angel funding and larger venture rounds.
• Board involvement: it acts as an early investor and board member.
• Follow-on introductions: it works with larger firms when a company is ready for its next round.

Clients

Enterprise software start-ups, usually taking their first institutional investment. Established companies seeking a first equity round can also be a fit. Named portfolio companies include BrightEdge Technologies, Xactly Corporation and Influitive.

Key facts

• Funds: three under management
• History: over ten years of early-stage investing
• Stage: seed