500 Startups announced the closing of its second fund with USD 44.1 million in capital commitments from various investors. Proceeds from the new fund represented a 50% increase from the USD 29.4 million raised in the first fund. However, it still fell short of its initial target of USD 50 million. The company said it would use 75% of the proceeds in domestic opportunities and the remaining 25% abroad.
500 Startups backs seed and accelerator companies. It invests USD 25,000 to USD 250,000 in early-stage firms that are already profitable or nearing profitability. According to VentureBeat, some of the companies backed by 500 Startups in the past included TaskRabbit, Twilio, Wildfire and SendGrid. To date, they have backed more than 500 companies in over 40 countries. 500 Startups Partner Christine Tsai told VentureBeat through email, "Actually we're getting closer to 600, but no we aren't changing our name!"
Tsai also said 500 Startups was preparing to announce the names of 30 companies who were admitted to its seventh accelerator program. There were 1,200 startup applicants for that round.
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