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Founder Launches VC Firm for Underfunded Founders
18 Feb
Summary
- Stacy Brown-Philpot founded Cherryrock Capital after roles at Google and IKEA.
- The firm targets Series A and B software companies with underinvested founders.
- Brown-Philpot emphasizes quality revenue over headline ARR for funding.
Stacy Brown-Philpot, a notable figure with past tenures at Google and as the leader of TaskRabbit before its acquisition by IKEA, has established Cherryrock Capital. This new venture firm is strategically focused on investing in Series A and Series B software companies. A core tenet of Cherryrock's mission is to support underinvested founders, addressing what Brown-Philpot identifies as a critical underserved segment within the venture landscape.
Brown-Philpot articulated her rationale for launching Cherryrock amidst a challenging fundraising climate. The firm's investment thesis centers on a rigorous evaluation of product-market fit at scale, with a strong emphasis placed on the significance of quality revenue rather than merely headline Annual Recurring Revenue (ARR). This approach reflects a grounded strategy for building and backing durable companies during pivotal growth stages.
Furthermore, Brown-Philpot shared insights on the evolving enterprise software sector, particularly the impact of artificial intelligence. Her experience on boards, including those at HP and StockX, informs her assessment methodologies for companies. Despite a bifurcated venture market, she remains optimistic about the continued funding prospects for strong businesses.
