
Differential Ventures
Description
Differential Ventures is a New York-based seed-stage venture capital firm established in 2017, specializing in B2B data-oriented technology solutions. The firm primarily targets companies leveraging advanced data science, machine learning, and artificial intelligence to address critical business challenges. Their investment thesis centers on the belief that data will continue to be a foundational element for innovation across various industries, driving efficiency and creating new market opportunities. Differential Ventures seeks out founders with deep technical expertise and a clear vision for how their data-driven solutions can disrupt or significantly improve existing enterprise workflows.
The firm's investment strategy focuses on providing initial capital to early-stage startups, typically from pre-seed to seed rounds. Differential Ventures is known for its hands-on approach, offering strategic guidance, operational support, and access to a robust network of industry experts and potential customers. Their typical initial check sizes range from $500,000 to $2 million, indicating a commitment to significant early-stage funding that can help companies achieve key milestones. Beyond the initial investment, Differential Ventures also reserves capital for follow-on rounds, demonstrating a long-term commitment to the growth and success of their portfolio companies.
Since its inception, Differential Ventures has demonstrated significant growth in its capital base, reflecting strong investor confidence and a successful investment track record. The firm launched its first fund, Fund I, with $15 million in 2018, followed by Fund II at $60 million in 2021, and most recently, Fund III, which closed at $100 million in 2023. This progression brings their total assets under management to $175 million, enabling them to support a growing number of promising startups. As of early 2024, their portfolio comprises over 50 companies, showcasing a diverse range of B2B data and AI innovations across various sectors. The firm's consistent fund growth underscores its established position within the seed-stage B2B tech ecosystem.
Investor Profile
Differential Ventures has backed more than 42 startups, with 2 new investments in the last 12 months alone. The firm has led 14 rounds, about 33% of its total and boasts 2 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Seed, Pre Seed, Series A rounds (top funding stages).
- Majority of deals are located in United States, Canada, Israel.
- Strong thematic focus on Software, Artificial Intelligence (AI), Machine Learning.
- Typical check size: $500K – $2M.
Stage Focus
- Seed (62%)
- Pre Seed (14%)
- Series A (12%)
- Series Unknown (7%)
- Grant (2%)
- Series B (2%)
Country Focus
- United States (50%)
- Canada (26%)
- Israel (21%)
- United Kingdom (2%)
Industry Focus
- Software
- Artificial Intelligence (Ai)
- Machine Learning
- Information Technology
- Big Data
- Saas
- Enterprise Software
- Network Security
- Generative Ai
- Data Visualization
Frequently Asked Questions
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