FAQs
Frequently asked questions about Insight PartnersFAQ: Early-Stage Venture Capital and Insight Partners
As a global software investor, Insight Partners frequently fields questions from founders and partners looking to understand how early-stage venture capital works, and how to find the right investor. Below, we’ve answered some of the most common questions founders ask when navigating early-stage fundraising.
Who are early-stage investors?
Early-stage investors are venture capital firms or angel investors who fund startups in the initial phases of growth, typically from pre-seed to Series A. These investors provide capital to help companies build products, hire early teams, and reach product-market fit.
At Insight Partners, we invest across all stages and across several sectors including:
- AI/ML + Data
- Consumer
- Cybersecurity
- DevOps
- eCommerce
- EdTech
- Fintech
- Future of Work
- Gaming
- GovTech
- GTM Tech
- HealthTech
- Human Capital
- IT Infrastructure
- LegalTech
- Life Sciences
- Supply Chain & Logistics
- PropertyTech
What do early-stage VCs look for in a startup?
Early-stage VCs are primarily looking for:
- A strong founding team with domain expertise
- A large, growing market
- A differentiated product or technology
- Early signs of traction or demand
- A clear go-to-market strategy
To learn about Insight Partners’ investments, explore our portfolio companies here.
How do VCs evaluate early-stage companies?
Unlike later-stage investors who rely more heavily on financial metrics, early-stage VCs use a mix of qualitative and quantitative criteria, such as:
- Team: Experience, vision, and ability to attract talent
- Product: Uniqueness, defensibility, and product-market fit
- Market: Size, timing, and urgency of the problem being solved
- Traction: Early usage, customer feedback, or revenue
- Momentum: Speed of iteration, team velocity, and market buzz
At Insight Partners, we often meet founders before they’ve scaled, meaning both qualitative and quantitative criteria are important. Explore our portfolio companies here.
How do early investors make money?
Early investors typically receive equity in exchange for their capital. When a company is acquired or goes public, those shares are converted into cash or liquid securities, delivering a return.
Insight Partners has a strong track record of helping companies grow into category leaders, significantly increasing the value of early-stage equity.
Who are the top early-stage VC firms?
“Top” can mean different things depending on stage and sector. Tier 1 early-stage VC firms are those with a track record of investing early in iconic startups, supporting founders with operational expertise, and helping them scale.
Insight Partners is recognized as a leading investor across all stages, with 30 years of experience investing in software companies. Explore our portfolio companies here.
How do I find early-stage investors?
Start by:
- Researching firms that invest in your sector and stage (e.g., SaaS, AI, fintech)
- Using platforms like Crunchbase, PitchBook, and Signal by NFX
- Attending founder-focused events, accelerators, and demo days
- Looking at who invested in similar companies
To connect with Insight Partners, you can:
What is considered early stage in venture capital?
Early stage typically includes:
- Seed: Founders are building product and validating the market
- Series A: Startups have some traction and are ready to scale
Insight Partners invests as early as Seed and leads Series A rounds, sometimes writing the first institutional check.
What do startup investors get in return?
Investors typically receive preferred shares and rights in exchange for their capital. In return, they provide not just money, but also mentorship, go-to-market support, hiring help, and access to networks. Insight Partners offers hands-on support through our Insight Onsite team, helping founders scale from seed stage to IPO.
What is the 80/20 rule in venture capital?
The 80/20 rule refers to the idea that a small portion of investments (typically ~20%) deliver the majority (~80%) of returns in a VC portfolio.
What are some early-stage companies Insight Partners has invested in?
Insight Partners has a long history of backing category-defining companies from their earliest stages.
Recent early-stage investments include:
- 858 Therapeutics
- Autobahn Therapeutics
- Averna Therapeutics
- BeyondMath
- Cloudsmith
- CoverForce
- CrewAI
- Filigran
- Finout
- Flank
- GLASS
- Pictor Labs
- Qbiq
- Rollstack
- SchoolAI
- VerAI
Does Insight Partners invest at the seed stage?
Yes. Insight actively invests in seed and Series A rounds for high-potential startups.
Recent early-stage investments include:
- Basking Biosciences
- Datafy
- Fastino
- Flagship RTL
- Hallo Theo
- HoneyHive
- Safebooks
- Superluminal
How does Insight Partners support early-stage startups?
We don’t just invest capital — we help founders scale faster with our in-house operating arm, Insight Onsite. This dedicated team of over 130 professionals fuels founder success through every stage of growth — from seed investment to exit. Built on three decades of industry leadership, we provide companies with exclusive access to deep operational expertise, expansive customer and talent networks, and targeted solutions to scale up and take off.
Why do early-stage founders choose Insight Partners?
- Our data-driven, founder-first approach that respects a founder’s vision while helping accelerate it
- Access to operational expertise, expansive customer and talent networks, and targeted solutions via Insight Onsite
- Our ability to scale companies from seed to IPO (e.g., Monday.com, SentinelOne)
- Our flexible capital – we invest across all stages
Interested in partnering with Insight Partners?
Explore our portfolio, meet our investment team, or reach out here to start a conversation. We’re always looking for the next generation of category-defining software companies.