Stage 2 Capital Launches $80M Fund II for B2B Software Startups

Stage 2 Capital Launches $80 Million Second Fund for B2B Software

Stage 2 Capital, a venture capital firm specializing in go-to-market strategies, has announced the launch of its second fund. This new fund is designed to deploy $80 million into B2B software companies.

A Unique Approach to Venture Capital

The firm differentiates itself by integrating traditional venture capital expertise with a robust network. This network comprises over 250 limited partners (LPs) and seasoned go-to-market professionals. These experts collaborate with portfolio companies to significantly accelerate their revenue expansion.

Founding and Origins

Stage 2 Capital was established in 2018 by Jay Po and Mark Roberge. Po previously held an investment role at Bessemer Venture Partners, while Roberge served as the chief revenue officer at HubSpot.

During his time at Bessemer, Po observed a recurring challenge among startup founders. Many lacked clarity on how to effectively scale revenue or construct a robust sales organization. Recognizing a substantial skills gap in go-to-market (GtM) strategies, he proactively pursued sales development training to gain deeper insights.

Concurrently, Roberge, while teaching at Harvard Business School and consulting with startups, encountered similar difficulties. Founders frequently struggled to build effective GtM functions. This led him to compile extensive data and insights, ultimately resulting in the publication of “The Sales Acceleration Formula: Using Data, Technology and Inbound Selling to go from $0 to $100 million.”

Leveraging a Distributed Model

Po highlighted that the firm operated with a virtual structure even before it became commonplace. This approach has enabled investments across diverse geographic locations and facilitated a deliberate curation of their network and introductions.

Guiding Startups on Scaling

A key objective is to guide startups in determining the optimal timing for scaling their operations. While rapid growth of 100% or 200% is desirable, many companies attempt to scale prematurely, influenced by the perceived success of others, Roberge explained.

“We often see companies attempting to achieve ambitious goals before they are adequately prepared,” he stated. “Our role is to help them understand both when and how quickly they can expand. They frequently overlook crucial contextual factors, such as the target audience and prevailing market conditions of comparable companies.”

First Fund Performance and Network Growth

The firm’s inaugural fund, launched in 2018 with $15 million in capital, resulted in 11 investments in companies ranging from late-seed stage to Series A. It also cultivated a network of 97 LPs, including prominent organizations like Gong, Procore, Atlassian, Asana, and Drift. The firm aims to support companies with world-changing potential, and early indicators of their investment strategy have garnered positive feedback.

Companies benefiting from the first fund’s investments are located throughout the United States and include Sendoso, Ocrolus, Gosite, and Reibus.

“Stage 2 Capital distinguishes itself from other VCs through the exceptional expertise and collaborative partnership offered by Jay, Mark, and the LPs,” commented Kris Rudeegraap, founder and CEO of Sendoso. “They have consistently exceeded expectations, and our revenue has increased nearly tenfold since their investment.”

Future Investment Plans

The second fund represents a fivefold increase in investment capital, according to Po. He anticipates investing in approximately 20 additional companies, with an average check size of $2 to $3 million. The team has already made seven investments, including DeepScribe, Arcade, QuotaPath, and Sales Impact Academy.