YL Ventures invests early in core-technology software companies in and around the Internet. Our specialization is transforming proprietary software technologies into game changing online services, while leveraging our highly-relevant Silicon Valley business network for introductions to customers, strategic partners, key hires, top-tier investors and potential acquirers.
We work closely with all of our portfolio companies in building successful ventures. We do not believe in a ‘spray and pray’ investment methodology, but rather employ a highly selective ‘cherry picking’ approach.
Ability to Evaluate a Wide Array of Growth & Exit Alternatives
We understand that successful startups come in lots of shapes and sizes. Some grow to become billion-dollar (or more) enterprises. Some achieve their destiny otherwise. We are knowledgeable and experienced in creating value for our founders and for ourselves in a wide range of exit scenarios, by strictly adhering to capital efficiency early-on and focusing primarily on deep-technology B2B portfolio companies.
When entrepreneurs choose to partner with YL Ventures, they know that their investor will support them in whichever exit strategy ultimately makes the most sense for their company, including the following two scenarios that we have come to know particularly well:
We see ourselves as true hard-working allies of our entrepreneurs, rather than as purely financial investors. Therefore, we seek complete alignment with company founders at every step of the way, and tend to avoid the common pitfalls of the entrepreneur-investor relationship. Our tolerance for myriad exit scenarios, both small and large, helps ensure that this vital alignment with founders is maintained.
On May 9, 2011, Limelight Networks, Inc. (Nasdaq: LLNW) acquired AcceloWeb, Ltd., a YL Ventures portfolio company since our initial investment in July 2009.
In the press release, Limelight said: "The talented AcceloWeb team has built the most innovative solution in the sector and we are excited to join forces with them to define best-in-class for this market." AcceloWeb was quoted saying: "We're pleased to join Limelight and continue our work building Internet scale software that improves end-user experiences on the Internet." The press release went on to say, "YL Ventures, headed by Yoav Andrew Leitersdorf, participated in the transaction as an investor, strategic advisor, and board member."
On April 30, 2013, ClickTale announced a $17MM Series B financing transaction with Amadeus Capital Partners, Goldrock Capital and Viola Credit. As part of the deal, YL Ventures and other shareholders sold a substantial percentage of their holdings.