In the last year, West Coast Equity Partners (WCEP) has invested more than $100 million in 30+ technology companies in Silicon Valley and other U.S. regions. The firm added the stock brokerage Robinhood, the e-learning platform Coursera, the neobanks Upgrade and One Zero Digital Bank, the DataRobot enterprise AI platform, the OpenWeb social engagement platform, and dozens of other highly sought-after tech companies.
WCEP, which was launched in 2020, invests on a deal-by-deal basis, giving its investors the flexibility and freedom to constantly invest in selected opportunities, exit and receive payouts, and reinvest.
Furthermore, in the second quarter of 2021, WCEP started up Scale-Up Unicorn Fund I, which permitted investors to acquire a diverse portfolio of U.S.-based tech tech firms. WCEP has funded 17 companies through Scale-Up Unicorn Fund I in just a few months, such as Upgrade neobank, Dataminr AI platform for risk detection, Scopely game developer, Psi Quantum quantum computer developer, Pipe Technologies financial services platform, Outschool e-learning platform, Side real estate brokerage, and many others.
WCEP participated in funding rounds alongside international investment commanders such as Andreessen Horowitz, Bessemer Venture Partners, BlackRock, DST Global, Fidelity, Goldman Sachs, Lightspeed Venture Partners, NEA, Sequoia Capital, SoftBank Vision Fund, Tiger Global, Spark Capital, among others.
Principles of investment focus and selection
WCEP focuses on significant fast-growing technology segments such as AI and machine learning, fintech, aerospace, e-learning, and cybersecurity. Aside from funding private companies worth more than $1 billion, the company invests in leading venture capital to strengthen relationships and gain access to the best deals.
“We invest in the most promising companies that will keep growing even during recession time, doubling and tripling their valuation from round to round,” says Alex Lazovsky, managing partner and co-founder at WCEP, who turned venture capitalist after dozens of years of experience as an American-Israeli tech entrepreneur.
Scale-Up Unicorn Fund I aims to generate at least three times ROI for its LPs within four years. To accomplish this, WCEP employs an investment strategy based on a research model that has been validated over the last five years. The fund invests at least 85 percent of its capital in companies worth $2 billion to $5 billion. Among the existing investors, WCEP uses a number of selection criteria, including strong revenue growth, positive unit economics, a scalable business model, and leading global venture capital firms.
Deep roots in the technology and venture capital markets
WCEP’s team is distinguished by a unique combination of professional expertise, in addition to years of investment experience in the United States, Europe, and Israel. The managing partners of WCEP are entrepreneurs and operational leaders who have become investors. They have previously founded and run successful technology firms, and they have extensive experience in corporate finance and investment. The firm’s impeccable reputation and solid experience allow it to access the most appealing deals.
“Reputation among tech founders and top-tier venture capital firms is a key for investing in highly-demanded Silicon Valley-based companies. When investors compete for the right to join the round of a successful startup, it is the reputation that determines who gets access to the deal. Long-term partnerships, as well as serving on the boards of directors of portfolio companies, allow us to set ambitious goals and achieve them,” says Alex Lazovsky.
Recognized in the global venture market, WCEP sees its mission as contributing to the growth of the venture capital industry and assisting both independent shareholders and portfolio companies.
“When a successful Silicon Valley startup raises a new round, its founders are after the “smart money” — capital that goes hand in hand with professional contacts and expertise. And that’s what sets us apart from many other VCs. Our portfolio companies use our business network to find clients and attract top managers, connect with other players in the market for partnerships or M&A transactions. For companies that want to give employees some liquidity, we offer secondary opportunities, so-called tender offers. And if a company is considering an IPO, we help consolidate and simplify the cap table,” adds Alex Lazovsky.
WCEP intends to fund approximately ten more unicorn companies in space technology, PropTech, FinTech, HR Tech, MarTech, gaming, and other areas in the coming months.
Mikey is a geek with a passion for all things tech. He enjoys keeping up-to-date with the latest advancements in a variety of industries and is particularly geared towards technology that changes the world.
