By combining the world’s most comprehensive free, searchable database of Venture Capital firms with the biggest library of verified reviews from founders themselves, Bound aims to rebalance the world of VC in favour of entrepreneurs and bring a much-needed transparency to the VC market.
With two in five startups failing due to fundraising difficulties, Bound wants to increase the likelihood that a startup dream becomes a reality by reimagining the relationship between entrepreneurs and investors. Simultaneously, Bound spotlights the best Venture Capital firms in a specific market, encouraging a more effective distribution of funds and investment.
A system out of sync
Research by Forward Partners last year found that while 92% of investors believe they add value, two thirds of founders gave their investors a low value-add rating and said that they failed to support their startup beyond providing funds. This dissatisfaction is compounded by the fact that many VC firms are coming up short on their own investors, with less than one in five providing x2 or more returns.
This discontent is visible in the reviews gathered by Bound, with 14% of founders rating their VC as either 1 or 2 stars out of 5.
Re-balancing the world of Venture Capitalism
Bound is the brainchild of Pavel Síma, and was inspired by his experience of navigating the VC world when he was founding the marketing technology firm Roivenue.
“Entrepreneurs are at a huge disadvantage when trying to find a VC partner, and this imbalance is hurting both founders and investors,” said Šíma. “Right now, VC firms hold all the cards – and that leads to bad relationships, bad deals, and failed startups. They have more of everything: more money, experience, lawyers and, most importantly, more time. Founders, especially first-time entrepreneurs, have none of these; they don’t know how to go looking for investors, let alone how to find ones that will support their startup and take them to IPO. It’s a process that takes months, at a time when they have a thousand other urgent priorities.
“Investment is supposed to be a partnership of mutual profit, but the power imbalance means too many startups go to the wall, crushing entrepreneurs’ dreams and discouraging them from founding another business in the future. Obviously, this leaves investors out of pocket, too. That’s why we’ve launched Bound: to enable founders to connect with the right VC on terms of true equality.”
Bound is the world’s only platform to combine detailed Venture Capital data with reviews from founders. The platform launched on the 3rd February with more than 6,000 reviews and a huge database of VC firms. Committed to levelling the playing field, Bound is making these free for founders for the first year from launch.
“Selecting the wrong investor is not just a huge waste of time and effort, it can actively hurt your chance of success,” continued Síma. “Bound is all about empowering entrepreneurs; by matching them with the right VC, we are creating a better community that will benefit both founders and investors and help to turn more dreams into thriving businesses.”