First Round Capital

First Round Capital
source
Name	First Round Capital
Foundation	2004
Founders	Howard Morgan, Josh Kopelman
Location	Philadelphia, Pennsylvania, United States
Industry	Venture capital
Website	firstround.com

First Round Capital is a venture capital firm based in Philadelphia, Pennsylvania, that specializes in providing seed funding to early-stage technology companies. Founded in 2004 by Howard Morgan and Josh Kopelman, the firm has established itself as a prominent first institutional investor for startups, often participating in Series A financing rounds. With a strong focus on community-building and hands-on support, it has backed numerous companies that have grown into major players within the tech ecosystem.

History

The firm was established in 2004 by Howard Morgan, a veteran angel investor and former partner at Brentwood Associates, and Josh Kopelman, an entrepreneur who had previously founded and sold Half.com to eBay. Initially operating from Philadelphia, a city not traditionally seen as a major venture capital hub, the founders aimed to identify and invest in promising technology startups at their earliest stages. A significant early success was its investment in LinkedIn, which went public in 2011 and was later acquired by Microsoft. This early win helped solidify its reputation and allowed it to raise subsequent funds, expanding its investment activities across major innovation centers like San Francisco, New York City, and the Silicon Valley.

Investment strategy

The firm employs a thesis-driven approach focused on being the first institutional capital for seed stage companies, typically investing between several hundred thousand to a few million dollars. It emphasizes building a concentrated portfolio and providing deep, hands-on operational support to its founders through programs like the First Round Network and exclusive events such as the CEO Summit. Beyond capital, it offers strategic resources including talent acquisition assistance, marketing guidance, and connections to later-stage investors like Andreessen Horowitz and Sequoia Capital. This strategy is designed to help portfolio companies navigate the challenges of early growth and secure subsequent funding rounds.

Notable investments

The firm's portfolio includes a wide array of successful technology companies that have achieved significant exits or grown into industry leaders. Its early investment in LinkedIn remains one of its most celebrated. Other prominent investments include Uber, the global ride-hailing giant; Square, the financial services and mobile payment company founded by Jack Dorsey; and Roblox, the popular online game platform. Further successes encompass Blue Apron, HotelTonight, and Stitch Fix, all of which completed initial public offerings. The firm has also backed notable software companies like Notion and Figma.

Partners and team

The partnership includes the founding duo of Howard Morgan and Josh Kopelman, who continue to play active roles. Other key partners have included Bill Trenchard, a former entrepreneur and executive at LiveOps, and Chris Fralic, who was instrumental in the early investment in LinkedIn. The team is composed of investors and operational partners with diverse backgrounds in entrepreneurship, product development, and engineering, many having held leadership positions at companies like Google, Facebook, and Twitter. This collective experience is leveraged to provide mentorship and tactical advice to the firm's extensive network of founders.

Impact and recognition

The firm is widely recognized for its influential role in shaping the modern seed funding landscape and for pioneering a community-centric model of venture capital. It has been frequently listed on the Midas List by Forbes, which ranks top technology investors. Its creation of open-source resources, such as the First Round Review, a publication featuring advice from seasoned entrepreneurs and executives, has been impactful beyond its immediate portfolio. The firm's emphasis on building a supportive network among founders is often cited as a key differentiator, influencing the operational practices of other venture firms like Union Square Ventures and Benchmark.

Category:Venture capital firms of the United States Category:Companies based in Philadelphia Category:Financial companies established in 2004