Oftentimes, we like to look back on different months and review different months of scouted startups. Today, we want to review our first 161 scouted companies and some interesting stats around them. If you're evaluating Seedscout, here's a peek into our early results.
Of the first 161 scouted companies, 44 of them have announced fundraises since their interview. Many have raised but have not announced yet, so we don't count them.
The average funding per startup when they were scouted was $6.5M and the the average funding as of today is $32.4M. That is an increase of 5x funding in 2.5 years, on average. Note this data is largely skewed by @LambdaSchool, @goshippo, @triple_byte, and @webflow.
If we filter our data to only account for companies that came into our interview having raised under $10M, the data is more impressive. The avg funding as of being scouted is $1.9M. The average funding now is $21.2M, which is nearly a 10x multiple of funding in 2 years.
Of these companies, we scouted 9 before anyone else invested. Of this sample size, the numbers are better.
Of the companies who raised $0 as of being scouted, they have now raised an average of $5.8M. The best scouted startup by the numbers is On Deck, who has raised $23M
The companies we scouted before anyone publicly invested are (In order of highest fantasy return):

- On Deck
- Adalo
- Trainual
- Neverland
- Ironfish Network
- Roboflow
- AirGarage
- Divinations (Every)
- Arist
- Skillbank

These companies are backed by Silicon Valley's finest.
Also, i'm sure my data isnt complete, as many angels invest in private. I go off of what's available on Crunchbase. Until we have a better source of data, that's what we use. Anyway, if you invested in any one in the first 161, you have a 6% chance of hitting one of these.
If we go off the data of all 161 startups, not just the "scouted first before investors" ones, then you have a 27% chance of investing in a company that already has a markup. With that average funding markup being 10x what they raised when they were scouted. Not bad odds.
Note, a funding markup is not the same as a valuation markup. but, funding markups are key in evaluating how the scouted companies are doing, because we dont have data on valuation. Funding markup can infer there is a valuation markup
Note, we don't only count a success if we scout someone before another investor invests. We have amazing startups who already have raised a little that still have raised a ton since who would have been good to reach out to. Those are, in order of fantasy funding markup....
- Postcript
- OpenPhone
- Flockjay
- H1
- Deel
- Fast
- Papa
- Wren
- Lance
- Delphia
- Stagger
- Lunchcub

And many more...
The point of this post is that back then, all of these companies look like nobodies too. You wouldn't recognize them if you were on Seedscout. Yet, 27% of companies we scouted of the first 161 raised more funding - average of 10x more than they had raised prior.
On Deck raised $23M in the 2.5 years since we scouted them. Fast raised $125M. Deel raised $204M.
My question for you is, who is the next On Deck? Well, chances are they are sitting in @seedscout eager to be noticed, but executing either way.
The only way to get intro one of these deals is to take a leap of faith. But based on our first 161 deals, you don't need to leap. Just sign up for Seedscout and invest in 3 companies. Based on the data at least one of them will raise more money in the future, if not all three.
So what are you waiting for? Start unicorn hunting today!

Sign up here: Seedscout.co

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More from @Mat_Sherman

19 Jul
Today's thread is about how to evaluate @seedscout's data. To start, we're a "first check in" database, meaning we want to show you deals before they get hot. This means, by design, you won't recognize many startups in the database. This is a feature, not a bug.

We live in a world where we look for external data points to validate something's validity. Where did you go to school? Where have you worked? What area of town do you live in? People use these signals to decide what's interesting and what isn't. Same goes for startup data.
People value deals based on the fact of if we heard about it before or we recognize different signals about the startup like founding team's school, their investors, if someone else was tweeting about it, etc,. Without these signals, it's hard for many to evaluate a startup.
Read 13 tweets
19 Jul
To start, you pretty much need to get filtered into a investors attention span. Ideally, filtered into many investors' attention spans. The best way to do this is to get warm intro'd to one of them. Ideally from a founder they backed. This is a transfer of trust.
Now you could go through an accelerator at pay 7% and try to break in that way, but accelerators have generally lost their effectiveness in this new market while charging the same. So i wouldnt go through one unless its YC and you want to eliminate all your optionality.
Let's assume you dont get into YC. You NEED to earn the trust of the investors. Cold emailing them will rarely work. It DOES work, but it rarely truly works on a macro scale. So your only path through them is the founders. The founders they backed. The founders they trust.
Read 13 tweets
1 Feb
Just read Atomic Habits by @JamesClear. This will go down as one of the top books i've ever ready that I can apply to my life as a founder. Here are are few of the lessons that really resonated for me.

There's a mismatch between immediate and delayed rewards. Most humans chase immediate rewards, but these go against long term ones. Instead, defer short term rewards to align with long term ones. (This reframes instant and delayed gratification for me).
Habit trackers are important. The main reason is because when your brain associates doing a task with crossing an item off of a list, it will shoot off a little dopamine. If you do this long enough, the brain will crave crossing off your habits on a list.
Read 12 tweets
1 Feb
Almost every founder I talk to wants to join @ycombinator almost by default, not giving a thought to the implications of what that means on their company and cap table. Here is a thread on how to think through the cost of YC (or any accelerator) in relation to your cap table.
Y Combinator is probably the most impactful institution for the creation of new startups, period.
With their core accelerator program funding the likes of Airbnb, Dropbox, and Stripe, as well as their Startup School program reaching millions of founders all over the globe, it’s clear that YC has set itself up to be the de-facto place to go if anyone wants to start a startup.
Read 47 tweets
31 Jan
For those who don't know, I treat my podcast like a fantasy portfolio. I'm going to start tracking monthly how different cohorts of guests are doing and sharing on Twitter. Here is my fantasy portfolio performance review of my podcast guests from Jan 2020 (one year ago).
High level stats:

- I interviewed 26 founders in Jan of 2020.
-The average funding raised for each company was $603,000 at the time of the interview
- Average funding now is $1.7M
- 5 companies raised more money since the interview (publicly announced raises)
- At least 2 of those companies are now closed down
- There are at least 5 companies I know have raised but haven't announced, so i don't count it.
Read 6 tweets

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