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Unconventional Fundraising: How One Startup Auctioned Off An Equity Stake For $22.5M

| April 8, 2014

The following post is from Rob Bernshteyn,  CEO of Coupa, a provider of cloud spend management solutions.

Raising my third round of venture capital for Coupa Software, I decided we should play by our own rules. In February 2012 we held a sourcing event, much like an auction, with the intention of selling the opportunity to invest in Coupa to the highest bidder. We pulled it off, landing $22 million in a round led by Crosslink Capital, but not without one heart-stopping moment along the way.

Applying sourcing techniques to venture capital was something I had never seen or heard of. I didn’t know if it could be done. But we had executed extremely well with the funds from our first two rounds. Venture capital markets were heating up again; our position was very strong and I thought we could use that to our advantage. Read more >>

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