Dave McClure: A Journey Through Tech and Venture Capital
Biography of Dave McClure:
Dave McClure, a prominent figure in the San Francisco Bay
Area, is renowned as both an entrepreneur and angel investor. He gained
recognition as the founder of 500 Startups, a renowned business accelerator,
now known as 500 Global. McClure served as the CEO of 500 Startups until his
resignation in 2017.
Following his tenure at 500 Startups, McClure wasted no time
in establishing Practical Venture Capital. This new venture capital fund aimed
to continue supporting companies he had previously funded through 500 Startups.
With his extensive experience and strategic insights, McClure continues to play
a pivotal role in shaping the startup ecosystem.
Personal Background:
Born in Morgantown, West Virginia, and raised in Columbia,
Maryland, McClure's upbringing shaped his diverse interests, including a
fondness for Dr. Seuss, Sesame Street, and Schoolhouse Rock. His love for
learning and creativity extends beyond the tech world, reflecting his
appreciation for diverse influences that inspire innovation.
Early Life and Education
Born in 1966 in Morgantown, West Virginia, Dave McClure
spent his formative years in Columbia, Maryland. He pursued his undergraduate
studies at Johns Hopkins University, graduating in 1988 with a Bachelor of
Science degree in Mathematical Engineering. This solid educational foundation
laid the groundwork for his future endeavors in the tech world.
Early Career in Software Development
Daren began his career as a software developer, working as a
consultant for companies like Intel and Microsoft. He developed applications
and database systems for corporate clients in Silicon Valley.
Early Career and Founders Fund
Dave's journey into investment began at Founders Fund, where
he focused on seed-stage investments in 40 companies. This period saw
remarkable success, with four unicorns and three IPOs emerging from his seed
investments. Notably, Dave led the seed round for Credit Karma in 2009, which
later yielded an exceptional return of over 400 times the initial investment
upon its acquisition by INTU. His $3 million portfolio delivered returns
exceeding $200 million in under a decade, showcasing his keen eye for promising
ventures.
Dave McClure's Impact on Technology Startups
Founding Aslan Computing and Early Ventures
In 1994, Dave McClure embarked on his entrepreneurial
journey by founding Aslan Computing, a technology consultancy. Just four years
later, he successfully sold the company to Servinet/Panurgy in 1998. Following
this achievement, McClure served as a technology consultant to esteemed tech
giants such as Microsoft and Intel, further solidifying his expertise in the
industry.
Before his venture capital career, Daren founded Aslan
Computing, an internet and e-commerce company. He grew the company to $2
million in revenue before it was acquired by Servinet.
Marketing and Leadership Roles
Daren has held various marketing and leadership roles
throughout his career. He's worked at companies like Simply Hired and PayPal,
where he led marketing teams and developed innovative programs.
Venturing into Marketing and Beyond
McClure's career took an exciting turn when he assumed the
role of Director of Marketing at PayPal from 2001 to 2004. After his tenure at
PayPal, he ventured into the realm of online recruitment, leading marketing
efforts at Simply Hired in 2005 and 2006.
McClure's journey in tech began in 2001 when he joined
PayPal as Director of Marketing. Prior to PayPal, he founded and led Aslan
Computing, which was acquired by Servinet in 1998. McClure's academic
background includes a BS in engineering and applied mathematics from Johns
Hopkins University, where he honed his analytical skills and fostered his
passion for technology.
Teaching at Stanford University
For a brief period in 2007, Daren was a visiting lecturer at
Stanford University. He taught a course on creating engaging Facebook
applications with Professor BJ Fogg. The course received national attention for
its innovative approach.
Connecting Tech Communities Worldwide
Daren started GeeksOnaPlane in 2009 to connect tech
communities globally. They organized trips for entrepreneurs and investors to
meet and learn from each other. Over eight years, they visited over 50 cities
worldwide, promoting entrepreneurship and innovation.
Founders Fund, Facebook Fund:
During his tenure at Founders Fund from 2008 to 2010,
McClure worked alongside luminaries like Peter Thiel and Sean Parker, making
seed-stage investments in 42 companies. His strategic investments resulted in
five unicorns and four IPOs, including Twilio, Lyft, and Credit Karma.
McClure's leadership was instrumental in driving impressive returns for the portfolio
he managed.
Pioneering Investments in Consumer Internet Startups
Post-PayPal, McClure transitioned into a prolific investor
in consumer internet startups, providing invaluable guidance and funding to
over 15 ventures. Notable investments include Jambool, a virtual goods
monetization platform acquired by Google in 2010, and TeachStreet, an online
education directory acquired by Amazon in 2011.
Fund and Venture Capital Involvement
In the summer of 2009, McClure assumed the role of Acting
Investment Director for Facebook fbFund, a joint venture incubator/accelerator
with venture capital firms Founders Fund and Accel Partners. This initiative
aimed to provide early-stage capital to startups leveraging Facebook Platform
& Facebook Connect, further demonstrating McClure's commitment to fostering
innovation in the tech space.
Dave McClure: A Journey Through Tech and Venture Capital / Biography of Dave McClure:
Dave McClure's Entrepreneurial Ventures and Controversies
Founding 500 Startups
In 2010, Dave McClure made a significant mark on the startup
landscape by establishing 500 Startups, which has since evolved into 500
Global. This venture served as both a seed accelerator and investment fund,
providing crucial support to budding entrepreneurs.
500 Startups:
McClure's most notable venture is 500 Startups, a renowned
Silicon Valley VC firm with an impressive track record. Since its inception in
2010, 500 Startups has invested in over 2,500 companies and 5,000 founders
across 75 countries, with investments in 40+ unicorns and 10+ IPOs. The firm's
portfolio includes success stories like Credit Karma, Canva, and Intercom,
solidifying its position as a global powerhouse in venture capital.
For more than 25 years, Dave has been deeply entrenched in
Silicon Valley's entrepreneurial and investment scenes. Over this time, he's
backed hundreds of startups worldwide, with an impressive track record
including involvement in five initial public offerings (IPOs) and over 15
unicorns. Some of these unicorns include Credit Karma, Twilio, SendGrid, Lyft,
The RealReal, Talkdesk, Grab, Intercom, Canva, Udemy, Lucid, GitLab, Reddit,
Stripe, and Bukalapak.
Influential Blog and Super Angel Status
McClure's impact extended beyond his ventures, as he gained
widespread recognition for his influential blog, 500 Hats. By 2011, it had
become one of the top ten most-read blogs on venture capital finance,
showcasing McClure's insights and perspectives on the startup ecosystem.
Involvement in Angelgate Controversy
Despite his successes, McClure faced controversy as one of
the so-called "Super Angel" investors embroiled in the Angelgate
controversy. This incident shed light on alleged collusion among prominent
angel investors, stirring debate within the startup community.
Dave McClure's Response to Sexual Harassment Allegations
Allegations and Apology
In 2017, Dave McClure faced serious allegations of sexual
harassment, as detailed in a New York Times article alongside other venture
capitalists. The article revealed that McClure had sent sexually inappropriate
messages to a female investor, prompting her to seek employment at his company.
In response to the accusations, McClure issued a public apology titled
"I'm a Creep. I'm Sorry" and stepped down from his day-to-day
management role.
Denial and Resignation
However, McClure later retracted his apology and denied the
allegations in a subsequent post, which was later deleted. Despite this, he chose
to sever all ties with 500 Startups, resigning as a general partner in the wake
of the controversy. The decision came amidst mounting pressure and scrutiny
surrounding the allegations.
Practical Venture Capital:
In 2019, McClure founded Practical Venture Capital, a VC
secondary firm specializing in providing liquidity solutions for LPs and GPs in
early-stage VC funds. The firm focuses on buying LP & GP fund interests in
microVC funds and direct secondary investments in breakout companies within
those portfolios. McClure has assembled a prestigious group of investors,
including senior executives from Facebook, Credit Karma, and Lyft, as well as
seasoned PE investors.
Building a Network with 42 Geeks
In 2022, Daren co-founded 42 Geeks with Chok Ooi. They aim
to connect people interested in startups, technology, and investing. They
organize events in Silicon Valley and New York, bringing together entrepreneurs
and investors from around the world.
Dave's Impact in Technology and Entrepreneurship
Dave is a regular speaker at events focusing on technology
and entrepreneurship. He's shared his insights and experiences with audiences
worldwide. Additionally, he's made significant investments in numerous
companies across the globe, contributing to their growth and success.
Investment Portfolio Highlights
Among Dave's notable investments are Credit Karma, which was
valued at over $3 billion in 2015, and Twilio, which raised over $100 million
by 2013. He's also been involved in successful exits such as MakerBot, acquired
by Stratasys for $400 million, and Wildfire Interactive, acquired by Google for
$350 million. Other notable investments include Viki (acquired by Rakuten for
$200 million), Mashery (acquired by Intel for approximately $200 million),
SendGrid (raised over $45 million by 2014), Mint.com (acquired by Intuit for
$170 million), and SlideShare (acquired by LinkedIn for $119 million).
Dave's contributions to the technology and entrepreneurship
sectors through his investments have played a significant role in shaping the
landscape of innovation and business growth globally.
Some companies where David McClure invested
- SpaceBasic- Business/Productivity Software
- Affordlt - Financial Software
- Ezra- Diagnostic Equipment
- ChannelMeter - Business/Productivity Software
- Sova Health - Healthcare Services
- StyleSeat - Information Services (B2C)
- Instamojo - Business/Productivity Software
- LaunchDarkly - Software Development Applications
- Vizalytics technology - Business/Productivity Software
- UXCam - Business/Productivity Software
- 20 Miles - Customer Data Platform
- WHO API - Prequalification of active pharmaceutical ingredients
- Remind – communication platform
- Common – offers private furnished bedrooms
- Demand Sphere - evolution and growth of GinzaMetrics
Dave McClure: A Timeline of Tech and Venture Capital
1988:
- Dave McClure graduates from Johns Hopkins University with a Bachelor of Science degree in Mathematical Engineering.
1994-1998:
- McClure founds Aslan Computing, a technology consultancy, which he later sells to Servinet/Panurgy in 1998.
2008-2010:
- McClure works at Founders Fund, making seed-stage investments in 42 companies, resulting in four unicorns and three IPOs.
2010:
- McClure founds 500 Startups, a Silicon Valley VC firm that invests in over 2,500 companies across 75 countries.
2017:
- McClure resigns from 500 Startups amidst allegations of sexual harassment, later founding Practical Venture Capital.
2019-Present:
- McClure focuses on Practical Venture Capital, providing liquidity solutions for LPs and GPs in early-stage VC funds.
2022-Present:
- McClure co-founds 42 Geeks to connect entrepreneurs and investors worldwide, continuing to share his insights in tech and entrepreneurship conferences.
