Pivot Investment Partners is an American venture capital and private equity firm known for their investments in late stage technology companies. Based in San Francisco, they focus on backing rapidly growing tech firms in enterprise software, fintech, consumer internet, and more. Some of their most notable deals have been in companies like Carta, OpenFin, Circle, and Toast. In this article, we’ll take an in-depth look at Pivot Investment Partners’ investment strategies, portfolio companies, deal history, and overall impact on the tech startup scene.
Pivot favors high-growth companies in fintech, enterprise software, and consumer internet
Pivot Investment Partners targets investments in late stage technology companies that are experiencing tremendous growth and market traction. Specifically, they focus on fintech, enterprise software, consumer internet/mobile, digital health, and other emerging tech sectors. Within these spaces, Pivot looks to back startups that are pioneers in their respective markets and that have potential to become industry leaders. For example, some of their fintech investments have been in innovators like Circle, DriveWealth, and OpenFin. On the enterprise software side, they’ve funded companies like Carta, Guideline, and Cadence. And for consumer internet, investments have included Toast, ezCater, Thumbtack, and others.
Pivot joined multiple large funding rounds in leading fintech startups
Pivot Investment Partners has been particularly active in fintech, participating in several notable later stage funding rounds. For example, they joined the $110 million Series D for Circle, a payments and digital currency firm. This 2014 round valued Circle at nearly $500 million. Pivot also joined the $42 million Series C for DriveWealth, a digital trading infrastructure provider, in 2018. More recently in 2019, Pivot led the $17 million Series C round for OpenFin, a financial operating system startup. Their fintech experience allows Pivot to identify and back the most promising later stage ventures in the space.
Pivot’s portfolio includes over 50 investments across tech sectors
Since being founded in 2015, Pivot Investment Partners has assembled an extensive portfolio of over 50 company investments. Along with the fintech deals mentioned earlier, they’ve also funded leading players in other tech sectors. For example, in enterprise software, Pivot has backed companies like Carta, Guideline, and Textio. Carta raised $300 million in Series E funding led by Pivot and others in 2019, boosting its valuation to $1.7 billion. Other notable Pivot investments include Toast, ezCater, Thumbtack, and Opendoor on the consumer internet side. Their portfolio reflects a keen eye for fast-growing startups across tech.
Pivot focuses on late stage companies and large funding rounds
Unlike traditional VC firms that focus on early stage startups, Pivot Investment Partners zeroes in on late stage growth companies that are gearing up for exit. They look for startups that have already raised significant capital and are experiencing strong market adoption. As a result, Pivot participates in larger funding rounds like Series B and beyond, investing sizable amounts between $10 million and $50 million per deal. Their typical check size is around $20 million. This late stage strategy allows Pivot to minimize risk while investing in more proven business models.
In summary, Pivot Investment Partners targets high-growth tech startups in sectors like fintech, enterprise software, and consumer mobile/internet. They focus on late stage companies that are pioneers in their markets with exit potential. Pivot has funded leading players like Carta, Circle, Toast, Guideline, and OpenFin across these tech sectors. Their late stage investments and seasoned partners allow Pivot to support rapidly scaling companies on the path to success.