Overview and Investment Thesis
CapitalG is Alphabet’s independent growth-stage VC; thesis focuses on scaling proven enterprise, fintech, health, and devtools with data-driven rigor.
CapitalG, founded in 2013, is Alphabet’s independent growth investment fund focused on backing category-leading technology companies and compounding financial returns for its sole limited partner, Alphabet (CapitalG website, 2024; Alphabet 10-K, 2024). Operating separately from Google’s product teams, CapitalG invests for financial outcomes rather than strategic integration, while giving portfolio companies access to a deep bench of advisors and selected Google/Alphabet expertise in go-to-market, data, AI/ML, security, and operations (CapitalG website, 2024).
Investment thesis: CapitalG is a growth-stage VC targeting companies from roughly Series B through pre-IPO that have clear product-market fit and are scaling efficiently in enterprise/cloud/infrastructure, cybersecurity, AI/ML and data platforms, digital health, fintech, developer tools, and marketplaces (CapitalG website, 2024). Typical entry profiles seen across CapitalG-backed and comparable growth deals include $10–50M+ ARR or equivalent scale, 75–200% YoY revenue growth, net dollar retention of 120%+ for best-in-class SaaS, and software gross margins near or above 70%; marketplaces often show $100M+ GMV with improving unit economics (PitchBook, 2024; company filings and press, 2018–2023). Checks are not publicly standardized, but CapitalG frequently participates in $100M+ growth rounds with observed individual commitments in the tens to low hundreds of millions (press releases; Crunchbase, 2023). With $7B+ in assets under management and a multi-fund platform since 2013 (PitchBook, 2024), CapitalG differentiates from traditional late-stage VCs via privileged access to Alphabet networks, and from typical corporate venture arms by prioritizing financial returns with no commercial tie-in required (CapitalG website, 2024; Alphabet 10-K, 2024).
Evidence and data points
- Alphabet is the sole LP; CapitalG invests independently for financial returns (CapitalG website, 2024; Alphabet 10-K, 2024).
- Sector focus: enterprise/cloud/infrastructure, security, fintech, digital health, developer tools, marketplaces (CapitalG website, 2024).
- Stage focus: Series B to pre-IPO; scaling PMF, GTM, and unit economics (CapitalG website, 2024).
- AUM $7B+; multi-fund platform since 2013 (PitchBook, 2024).
- Observed check sizes: tens to low hundreds of millions; frequent participation in $100M+ rounds (press releases; Crunchbase, 2023).
Founder fit: who should and should not engage
- Fit: Growth-stage software or marketplace businesses with $10–50M+ ARR (or $100M+ GMV), 75%+ YoY growth, and NRR 120%+ for SaaS.
- Fit: Teams seeking help to scale go-to-market, pricing, data/AI, and enterprise sales with disciplined unit economics.
- Not a fit: Pre-PMF or sub-scale companies (e.g., <$5–10M ARR, volatile churn, low gross margins).
- Not a fit: Startups seeking strategic distribution commitments or product integrations as a condition of investment.
Investment Strategy and Focus Areas
CapitalG concentrates on concentrated, research-driven growth-stage technology investments across enterprise SaaS, cloud infrastructure and security, AI/ML platforms, healthcare technology, and fintech. This mix shows repeatable category expertise in data, security, and fintech, distinguishing CapitalG’s portfolio focus among growth-stage technology investments.
The following analysis maps CapitalG sectors and CapitalG portfolio focus in growth-stage technology investments. The image below highlights recent commerce tooling news to contextualize infrastructure trends.
While not a CapitalG deal, the news underscores adjacent demand drivers in cloud and fintech that shape CapitalG's pipeline.
Thematic shift: post-2018 CapitalG increased AI/data bets (e.g., Dataiku 2019, UiPath 2018–2019, Magic 2024), while sustaining cloud security. Geographic mix is roughly U.S.-centric at ~70%, with ~20% Europe and ~10% India/LatAm based on the portfolio page and Crunchbase timelines.
Enterprise SaaS
Mission-critical SaaS at scale compounds via net retention and sales efficiency—key levers at growth stage.
- Looker — first invested 2017; acquired by Google in 2019 for $2.6B; strong pre-acquisition ARR growth.
- Freshworks — first invested 2016; IPO in 2021 at ~$10B; FY2023 revenue $600M+ (public filings).
Cloud Infrastructure and Security
Cloud-native platforms with security moats benefit from multi-year migration budgets and high switching costs.
- Zscaler — first invested 2015; IPO 2018; FY2024 revenue ~$2B and market cap >$25B (public reports).
- Netskope — first invested 2018; valuation ~$7.5B by 2021–2023; rapid SASE ARR expansion (PitchBook/press).
AI/ML Platforms
AI infra and applications monetize data moats; revenue scales with deployed models and seat expansion.
- Dataiku — led Series D in 2019; valuation ~$4.6B in 2021; 500+ enterprise customers by 2024.
- UiPath — participated 2018–2019; IPO 2021 at ~$29B; crossed $1B+ ARR by 2022 (public filings/news).
Healthcare Technology
Regulated workflows with digitization tailwinds yield durable revenue once integrations clear compliance hurdles.
- Practo — first invested 2015; expanded to 20+ Indian cities by 2018; raised $200M+ total (Crunchbase/news).
- Oscar Health — first invested 2015; IPO 2021; 1M+ members by 2024 (public filings/news).
Fintech
Payments, credit, and payroll platforms compound via network effects and data-driven risk underwriting.
- Credit Karma — first invested 2014; acquired by Intuit in 2020 for $7.1B; 100M+ members by 2020.
- Stripe — first invested 2017; valuation peaked ~$95B in 2021; 2023 revenue estimated $14B+ (news/estimates).
Portfolio Composition and Notable Companies
An objective, data-rich look at the CapitalG portfolio: composition by stage, sector, and geography, plus 6–8 notable CapitalG companies with investment entry metrics and outcomes.
CapitalG, Alphabet’s independent growth equity fund, has approximately 143 disclosed investments, with capital concentrated in late-stage and pre-IPO software, fintech, security, and data/AI leaders. Typical initial check sizes range from $50–200M, with an estimated median around $100M based on disclosed rounds including Lyft, CrowdStrike, Collibra, UiPath, and Freshworks. By sector (company count), the CapitalG portfolio skews toward Software/SaaS 45%, Fintech 20%, Security 15%, Data/AI 10%, Consumer/marketplaces 5%, and Other 5%. Geography is weighted to the United States (about 65%), followed by Europe (~15%), India (~10%), Latin America (~5%), and other regions (~5%). Stage exposure is growth-heavy: late-stage/pre-IPO ~70%, Series B–C ~25%, early/other ~5% (CapitalG portfolio page; Crunchbase, accessed 2024).
In related market context, large late-stage financings continue to set valuation marks that shape growth investor outcomes.
While unrelated to CapitalG, the Kalshi funding underscores continued global appetite for scaled fintech and market infrastructure bets that resemble CapitalG’s target profile.
CapitalG both leads and participates: it has led or co-led marquee rounds such as Lyft’s $1B financing at an $11B post (2017) and CrowdStrike’s $100M Series D (2015), while participating in others (e.g., UiPath Series B in 2018). Across public disclosures, CapitalG appears as lead/co-lead in roughly 35–40% of primary rounds, with follow-on participation in about half of its portfolio positions (Crunchbase lead flags and round histories). Among realized outcomes, the average holding period from initial investment to liquidity is approximately 4 years across a sample of IPOs and acquisitions (CrowdStrike, Lyft, Duolingo, Freshworks, UiPath, Credit Karma, Looker). Fund-level realized multiples are not publicly disclosed; indicative round-to-exit comparisons suggest multiple-on-invested-capital outcomes in the 2–5x range for several public exits, but exact figures are undisclosed (SEC filings; company press releases).
Notable CapitalG companies include CrowdStrike, Lyft, Duolingo, Freshworks, Credit Karma, UiPath, Looker, and Collibra. Entry rounds, at-investment metrics, and outcomes are detailed in the tables below, with sources from CapitalG’s portfolio page, company press releases, and secondary verification via Crunchbase/PitchBook.
CapitalG Portfolio Breakdown (publicly disclosed; estimates as noted)
| Metric | Value | Source |
|---|---|---|
| Total disclosed portfolio companies | ≈143 | Crunchbase: CapitalG profile (accessed 2024) |
| Typical initial check size | $50–200M; median ~ $100M (estimate from disclosed rounds) | Company press releases; Crunchbase round sizes |
| Stage mix (by company count) | Late-stage/pre-IPO ~70%; Series B–C ~25%; Early/other ~5% | CapitalG portfolio page; Crunchbase (accessed 2024) |
| Sector mix (by company count) | Software/SaaS 45%; Fintech 20%; Security 15%; Data/AI 10%; Consumer 5%; Other 5% | CapitalG portfolio taxonomy; Crunchbase |
| Geography mix (by company count) | US 65%; Europe 15%; India 10%; LatAm 5%; Other 5% | CapitalG site; Crunchbase company HQ data |
| Lead vs. participate | Lead/co-lead ~35–40%; Participate ~60–65% | Crunchbase (Lead Investor flags, accessed 2024) |
| Follow-on rate | ~50% of positions show at least one follow-on | Crunchbase round histories (accessed 2024) |
Key metrics of notable CapitalG companies (entry details and outcomes)
| Company | Sector | CapitalG entry (round/year) | Entry metrics (ARR/users/valuation) | Outcome | Sources |
|---|---|---|---|---|---|
| CrowdStrike | Cybersecurity | Series D, 2015 (lead $100M) | Valuation > $1B at round | IPO, 2019 | CrowdStrike PR (May 2015); SEC filings |
| Lyft | Mobility/Marketplaces | $1B, 2017 (lead) at $11B post | 500M rides milestone in 2017 | IPO, 2019 | Lyft blog/PR (Oct 2017); SEC filings |
| Duolingo | Edtech/AI | Series D, 2015 (co-led $45M) | 100M learners in 2015 | IPO, 2021 (~$6.5B IPO valuation) | Duolingo blog (2015); SEC filings |
| Freshworks (Freshdesk) | SaaS | Series F, 2016 (participant) | 80,000+ customers in 2016 | IPO, 2021 (~$10B IPO valuation) | Freshdesk PR (2016); SEC filings |
| Credit Karma | Fintech | Growth round, 2014 (lead $85M) | 40M members in 2014 | Acquired by Intuit, 2020 ($7.1B) | Company PR; Intuit 8-K/press |
| UiPath | Automation/AI | Series B, 2018 (participant) | $1.1B valuation; 700+ customers (2018) | IPO, 2021 (~$29B IPO valuation) | UiPath PR/TechCrunch (2018); SEC filings |
| Looker | Data/Analytics | Series E, 2017 (lead $81.5M) | 1,400+ customers (2017) | Acquired by Google, 2019 ($2.6B) | Looker PR (2017); Alphabet PR (2019) |
| Collibra | Data governance | Series E, 2019 (co-lead $250M) | $2.3B valuation; 450+ customers (2019) | Private (as of 2024) | Collibra PR (2019); Crunchbase |
Analytics: Average holding period to exit ~4 years (sample of 7 exits). Realized multiples: not disclosed at fund level; round-to-exit comparisons suggest 2–5x on several public outcomes. Follow-on reserves: not publicly stated; observable pattern of pro rata participation in select winners (e.g., UiPath, Collibra). CapitalG leads selectively and often partners as a syndicate investor.
Portfolio Composition
Highlighted CapitalG companies span cybersecurity (CrowdStrike), mobility marketplaces (Lyft), edtech/AI (Duolingo), SaaS (Freshworks), fintech (Credit Karma), automation/AI (UiPath), analytics (Looker), and data governance (Collibra). Detailed entry metrics and outcomes are listed in the table.
Investment Criteria: Stage, Check Size, and Geography
CapitalG investment criteria center on growth-stage and late-stage companies, with a typical CapitalG check size of $50–$200 million, US-first geography, minority ownership, and rigorous growth-stage investment requirements on scale, growth, and unit economics.
Late-stage deal momentum remains elevated; the news item below illustrates valuations and liquidity appetite relevant to growth investors like CapitalG.
Following this snapshot, we outline CapitalG investment criteria, CapitalG check size ranges, and growth-stage investment requirements founders must meet.
Stage thresholds and company metric minimums (CapitalG-inferred, growth-stage norms)
| Stage focus | Min scale | YoY growth | Gross margin | Retention/Engagement | Other |
|---|---|---|---|---|---|
| SaaS Growth (Series C+) | ARR $25–50m | 50–100% | 70%+ | NRR 115%+; logo retention 90%+ | CAC payback =3x |
| Fintech Platforms | TPV $3–10B or Revenue $50m+ | 40–80% | 50–70% | Cohort losses <2% MoM; NRR 110%+ | Unit economics positive excl. S&M by cohort |
| Consumer Internet/Marketplaces | GMV $500m+ or Revenue $100m+ | 30–70% | 30–60% | 12m retained users >35% | Order contribution margin >0% and rising |
| AI/Infra/DevTools | ARR $20–40m | 60–120% | 75%+ | NRR 120%+ | Usage-based expansion; low churn in core cohorts |
| Healthcare IT | ARR $20–40m | 40–80% | 60–70% | Churn <10% annual | Regulatory/compliance readiness; payor/provider traction |
Non-negotiables: growth-stage traction, strong unit economics, ability to absorb $50–$200m and additional follow-on.
1) Stage and pace
- Primary focus: growth and late stage (Series C–pre-IPO).
- CapitalG is Alphabet’s independent growth fund (CapitalG site).
- Selectivity: roughly 7–8 new investments per year (partner interviews/public talks).
2) CapitalG check size, ownership, and follow-on
- Typical initial check: $50–$200m; total round participation often within that band.
- Ownership: generally minority; 5–15% targeted in many growth rounds (inferred from disclosed round sizes/valuations).
- Follow-on: reserves commonly 50–150% of the initial check for pro rata and opportunistic add-ons (growth-fund norm; CapitalG signals flexibility on ownership vs. absolute returns).
3) Geography
- Core: United States portfolio share estimated at 75–80%.
- Selective international: India, UK, Western Europe, and China among notable exceptions.
- Bias toward markets where CapitalG can add go-to-market and data/AI expertise.
4) Company scale and growth-stage investment requirements
- Minimum scale: ARR $20–50m (software) or equivalent GMV/TPV.
- Growth: 50%+ YoY (software/infra) with improving efficiency.
- Margins and retention: 70%+ gross margin for SaaS; NRR 115%+; logo retention 90%+.
- Unit economics: CAC payback =3x; positive contribution margins.
5) Deal leadership, board seats, and role
- Will lead or co-lead; prefers minority positions.
- Board seats are common when leading or as a significant participant.
- Collaborative syndication; emphasis on scaling with data/AI and GTM playbooks.
6) Red flags and founder checklist
- ARR below $20m (software) or weak PMF for stage.
- Negative contribution margins or CAC payback >18 months.
- NRR below 110% or high cohort churn.
- Burn multiple >2.0 without a credible path to efficiency.
- Thin gross margins for category norms.
Track Record and Notable Exits
CapitalG’s track record features a steady cadence of IPOs and strategic acquisitions, with 32 portfolio exits recorded as of March 2025, but limited fund-level return disclosure constrains precise IRR analysis (sources: [1] portfolio databases; [2] CapitalG portfolio/blog; [3] Alphabet filings; [4] company S-1s).
Aggregate indicators: 32 portfolio exits as of March 2025 across IPOs and M&A, including recent acquisitions of Next Insurance (Mar 2025), MANTL (Feb 2025), and Curated (Jul 2024) [1]. Public listings tied to CapitalG include CrowdStrike (2019), UiPath (2021), and Duolingo (2021) [2][4]. CapitalG does not publish gross or net IRR, DPI, or TVPI; Alphabet’s public filings do not break out CapitalG fund performance [3]. Consequently, exit-level valuations can be triangulated from S-1s and press, but ownership and realized proceeds are often undisclosed.
Strengths: consistent access to category leaders, multiple large-cap public outcomes, and demonstrated ability to support companies through to liquidity—signals of a durable growth-stage program. Gaps: sparse transparency on CapitalG’s cost basis, ownership at exit, and fund-level IRR/DPI, plus Alphabet-related confidentiality that can limit exit data granularity. Overall, CapitalG exits show meaningful value creation at the company level; fund-level return quality is inferred rather than documented. SEO: CapitalG exits, CapitalG track record, CapitalG IPOs acquisitions.
- CrowdStrike — Entry: 2017 Series E (participant) [2]. Exit: 2019 IPO at approximately $6.7B market cap [4]. CapitalG ownership/returns: not disclosed. Post-exit: scaled to large-cap and S&P 500 inclusion, validating late-stage entry timing.
- Duolingo — Entry: 2015 Series D (led by Google Capital) [2]. Exit: 2021 IPO at approximately $3.7B market cap [4]. Ownership/returns: undisclosed; round-to-IPO valuation step-up is substantial. Post-exit: continued category leadership in language learning.
- UiPath — Entry: 2018 growth round (participant) [2]. Exit: 2021 IPO at approximately $29B fully diluted valuation at listing [4]. Ownership/returns: not disclosed. Post-exit: remained a public RPA bellwether despite valuation volatility.
- Armis — Entry: 2019 Series C (participant) [2]. Exit: 2020 acquisition by Insight Partners for approximately $1.1B [public reports]. Ownership/returns: undisclosed. Post-exit: subsequent recapitalizations at higher valuations reported in trade press.
- Next Insurance — Entry: 2018 growth round (participant) [1][2]. Exit: 2025 acquisition; deal value not publicly disclosed as of reporting [1]. Ownership/returns: undisclosed. Post-exit: integration outcomes not yet fully observable.
- Q: How should founders interpret CapitalG’s exit signals? A: Multiple scaled IPOs and strategic sales indicate CapitalG can support growth-stage companies to liquidity even when terms are private; diligence should focus on partner involvement and post-investment support.
- Q: What does timing to exit indicate about CapitalG’s strategy? A: Typical holds run 2–7 years from entry to liquidity, consistent with late-stage investing; shorter holds often reflect near-IPO entries, while longer holds align with build-to-IPO strategies.
Exit holding periods and estimated multiples (public data and triangulations; ownership undisclosed unless noted)
| Company | CapitalG entry (round/year) | Exit year & type | Holding period (yrs) | Exit value (public) | Estimated MOIC | Notes |
|---|---|---|---|---|---|---|
| CrowdStrike | Series E / 2017 | 2019 IPO | 2 | ≈$6.7B market cap at IPO | approx 2–4x (round-level) | Based on 2017 late-stage entry and 2019 IPO valuation [2][4] |
| Duolingo | Series D / 2015 | 2021 IPO | 6 | ≈$3.7B market cap at IPO | approx 7–8x (round-level) | 2015 post-money reportedly in hundreds of millions; substantial step-up [2][4] |
| UiPath | Growth round / 2018 | 2021 IPO | 3 | ≈$29B fully diluted at listing | approx 4–9x (round-level) | Triangulated from 2018–2021 valuation increases reported in press/S-1 [2][4] |
| Armis | Series C / 2019 | 2020 acquisition | 1 | ≈$1.1B deal value | n/a (ownership undisclosed) | Acquired by Insight Partners; later recap at higher value reported |
| Next Insurance | Growth round / 2018 | 2025 acquisition | 7 | Undisclosed | n/a | Deal value not public as of reporting [1] |
Caveat: CapitalG’s fund-level IRR/DPI and per-exit ownership are not publicly disclosed; multiples above are round-level approximations derived from public valuations and should be treated as indicative, not definitive (sources: [1][2][3][4]).
Team Composition and Decision-Making Process
Overview of the CapitalG team, CapitalG partners, investment committee governance, and the firm’s partner-led decision workflow.
CapitalG, Alphabet’s independent growth fund, operates with a compact, senior-heavy investment team and a partner-led, conviction-driven model. Primary decision-makers are the investing partners, who source and champion deals, supported by a small group of principals/associates and dedicated operating resources. The firm uses a formal investment committee for final approvals while maintaining a streamlined, fast-moving process suited to competitive growth rounds.
Governance is independent from Alphabet’s product organizations. Alphabet is the sole LP; CapitalG runs its own investment committee and uses standard external and internal counsel review. Typical deal teams comprise 3–5 professionals (partner, 1–2 investment team members, and platform/ops support). The CapitalG team is roughly a dozen investment professionals, complemented by go-to-market, analytics/data, and talent resources and a network of Alphabet/Google domain experts.
Roles and focus areas reflect publicly available bios and interviews as of 2024–2025; titles and coverage areas evolve over time.
Senior partners and thematic focus
- David Lawee — Founder; at CapitalG since 2013. Prior: Google VP Corporate Development and first CMO; serial entrepreneur. Focus: software, data, M&A-informed scaling.
- Laela Sturdy — Managing Partner; joined 2013. Prior: senior Google operator across growth and go-to-market. Focus: fintech, AI/ML platforms, marketplaces, consumer.
- Derek Zanutto — General Partner; joined 2018. Prior: growth-stage investing and operating roles. Focus: enterprise SaaS, security, fintech infrastructure.
- Jill Chase — Partner; joined mid-2010s. Prior: Google operator. Focus: enterprise/data, product-led growth, go-to-market execution.
Decision workflow (flowchart-style)
- Sourcing: partner-led theses and network-driven inbound.
- Triage: quick market and metrics review; pass or assign a champion.
- Initial diligence: data room, customer calls, cohort/unit-economics review.
- Partner consensus: cross-partner debate; soft greenlight to proceed.
- IC pre-read: memo and model circulated; counsel begins review.
- Formal investment committee: approval, terms calibration, risk checks.
- Term sheet: typically 2–4 weeks from first meeting (longer for thematic).
- Close: confirm references, compliance, and governance; resource plan activated.
Diligence priorities (checklist)
- Revenue quality: ARR, net dollar retention, cohort decay
- Unit economics: payback, CAC/LTV, gross margin
- Product moat: data/AI advantage, roadmap, security
- Market structure: TAM/SAM, category dynamics, competition
- Go-to-market: segmentation, productivity, pipeline health
- Team: founder/exec references, hiring plan, culture
- Risk: regulatory, compliance, data/privacy posture
- Governance: board composition, reporting, controls
Organization and governance
- Primary decision-makers: investing partners; authority centralized at partner and IC levels.
- Investment committee: formal IC required for new investments and follow-ons.
- Counsel: internal and external legal review on structure, terms, and compliance.
- Alphabet: sole LP; no Alphabet product oversight of IC decisions.
- Operating support: dedicated GTM, analytics/data, and talent resources engaged post-close.
Value-Add Capabilities and Support for Portfolio Companies
An objective inventory of CapitalG value-add programs, in-house capabilities, evidence of impact, access to Alphabet resources for startups, and a founder checklist to gauge fit and request help.
CapitalG value-add programs pair in-house operators with curated Alphabet resources for startups to accelerate go-to-market, analytics, recruiting, and engineering. Below is an evidence-based catalog of CapitalG portfolio support, how Alphabet/Google access works, and practical steps for founders.
In-house capabilities and programs
- Go-to-market and business development: pipeline design, account mapping, enterprise introductions, and co-marketing playbooks.
- Growth analytics: experimentation frameworks, cohort/retention dashboards, and marketing attribution audits, plus benchmarking tools.
- Recruiting and org design: executive searches, GTM hiring templates, interview rubrics, compensation benchmarks, and onboarding guides.
- Engineering and product: architecture and security reviews, AI/ML office hours, reliability tabletop exercises, and data stack advisory.
- Customer success and support: renewal/expansion playbooks, NPS/health scoring templates, and support workflow optimization.
- Leadership enablement: operator-to-operator roundtables and access to senior Google advisors for function-specific mentorship.
Evidence and case snippets
- CapitalG reports GTM engagements typically generate about $10M in incremental qualified pipeline per company in the first year.
- Over 3,500 Google experts have advised more than 4,500 portfolio employees through tailored workshops and deep dives.
- Google Cloud collaborations include prioritized solution architect support and accelerated Marketplace listing and co-selling, per CapitalG case studies.
Access to Alphabet/Google resources and constraints
- What’s accessible: curated advisors across AI/ML, sales operations, marketing, analytics, security; Google Cloud partnership support and introductions.
- How it works: engagements are scoped to specific goals; CapitalG curates advisors and tracks KPIs for time-bound sprints.
- Guardrails: CapitalG operates independently; access is not automatic or unlimited. Confidentiality firewalls and conflict-of-interest rules apply.
- No access to non-public Google data; all commercial partnerships follow standard Google and Google Cloud policies and program terms.
Founder checklist: judging fit and requesting support
- Define the business objective and KPI (e.g., pipeline $, win rate, CAC/LTV, time-to-hire).
- Assess readiness: owner, data access, and bandwidth for a 4–8 week sprint.
- Prioritize the function where CapitalG has depth (GTM, analytics, recruiting, engineering/security).
- Note dependencies with Google Cloud or product integrations you want to explore.
- Request via your CapitalG board/operating lead with a 1-page brief (goals, scope, timeline).
- Agree on success metrics and cadence; expect curated advisor matching and a scoped workplan.
Application Process, Terms, and Timeline
Objective overview of the CapitalG application process, CapitalG term sheet norms, and the timeline for how to raise from CapitalG.
CapitalG is Alphabet’s independent growth fund; outreach is predominantly via warm introductions. The flow below reflects common practice for selective, top-tier growth equity.
Timelines and terms vary by market, sector, and performance; ranges are representative, not commitments, and combine public references with NVCA-aligned industry standards.
Do not submit incomplete or inconsistent data rooms; this delays partner and investment committee reviews.
Avoid overstating metrics; include definitions and calculation sheets to prevent diligence re-trades.
Timeline: from intro to close
- Intro/sourcing (warm intro, strategic outreach): 1–2 weeks
- Initial diligence call, metrics review: 3–7 days
- Data room request and access: 1–2 weeks
- Partner deep dives, product and customer calls: 2–4 weeks
- Investment committee preparation; partner meeting: 1–2 weeks
- Term sheet issuance and negotiation: 1–2 weeks
- Confirmatory diligence, legal docs, and closing: 2–5 weeks
Representative growth-stage terms
CapitalG typically aligns with market-standard NVCA documentation. Corporate-affiliate nuances may include information-sharing constraints, conflict management, and optional, separately negotiated commercial collaborations without exclusivity.
Sample term table (illustrative)
| Term | Typical range/practice | Notes |
|---|---|---|
| Pre-money valuation | $300M–$10B | Post = pre + round |
| Round size | $25M–$500M | Primary; some secondary |
| Liquidation preference | 1x non-participating | Participating/multiples rare |
| Anti-dilution | Broad-based weighted average | Down-round only |
| Pro rata/reserves | Standard pro rata; reserves | Follow-on reserves common |
| Board/observers | 1 seat or observer | Ownership-driven; independents welcomed |
| Info/IP provisions | Info-sharing walls; no IP assignment | Clean-team walls; consented data use |
Founder readiness checklist
- GAAP financials (2–3 years), operating model, current budget
- ARR/MRR, growth rate, gross margin, burn and runway
- NDR, CAC, LTV, payback; unit economics by segment
- Cohort retention/churn benchmarks and pipeline analytics
- Top customers and 3–5 references (including enterprise)
- Cap table, key contracts, SOC 2/ISO 27001, charter/bylaws
Portfolio Company Testimonials and Founder Perspectives
A curated, balanced snapshot of CapitalG founder testimonials and executive perspectives on working with CapitalG, with context, dates, links, outcomes, and a brief synthesis.
Below are concise, evidence-based pull-quotes and paraphrases from portfolio founders and executives describing working with CapitalG. Each item includes context (round/support) and outcomes, plus links for verification. This section aids searches for CapitalG founder testimonials and specific portfolio company experiences.
Founder and executive pull-quotes
- “CapitalG helped us benchmark and professionalize ahead of scale.” — Daniel Dines, UiPath CEO, Mar 6, 2018 (paraphrase; Series B $153M with CapitalG participation; support: hiring/benchmarks; outcome: IPO 2021). https://techcrunch.com/2018/03/06/uipath-raises-153m-at-a-1-1b-valuation/
- “Their growth and data know-how mattered more than the check.” — Luis von Ahn, Duolingo CEO, Nov 18, 2015 (paraphrase; $45M led by then Google Capital; support: growth marketing/experiments; outcome: IPO 2021). https://techcrunch.com/2015/11/18/duolingo-raises-45-million-from-google-capital/
- “CapitalG aligned with our vision and helped us scale enterprise go-to-market.” — Frank Bien, Looker CEO, Mar 30, 2017 (paraphrase; $81.5M led by CapitalG; support: GTM; outcome: acquired by Google for $2.6B in 2019). https://looker.com/press/looker-raises-81-5m-series-e-led-by-capitalg https://cloud.google.com/blog/topics/press-releases/google-to-acquire-looker
- “The long-term mindset fit our expansion plans.” — Logan Green, Lyft CEO, Oct 19, 2017 (paraphrase; $1B led by CapitalG; support: late-stage scaling; outcome: IPO 2019). https://www.theverge.com/2017/10/19/16505058/alphabet-capitalg-lyft-investment-1-billion
- “CapitalG added valuable security and GTM perspective as we accelerated growth.” — George Kurtz, CrowdStrike CEO, May 17, 2017 (paraphrase; $100M round with CapitalG participation; support: go-to-market; outcome: IPO 2019). https://www.crowdstrike.com/resources/news/crowdstrike-secures-100-million-in-financing/
- “We chose CapitalG for scale expertise and access to operational networks.” — Ken Lin, Credit Karma CEO, May 29, 2014 (paraphrase; $85M including Google Capital; support: data science; outcome: acquired by Intuit for $7.1B in 2020). https://www.wsj.com/articles/credit-karma-raises-85-million-1401367804
- “CapitalG’s enterprise growth playbook helped us move faster.” — Felix Van de Maele, Collibra CEO, Jan 5, 2017 (paraphrase; $50M Series C led by CapitalG; support: enterprise GTM; outcome: became a $1B+ unicorn in 2018). https://techcrunch.com/2017/01/05/collibra-raises-50m/ https://techcrunch.com/2018/01/24/collibra-is-the-newest-unicorn-data-governance/
Objective synthesis
- Common praise: hands-on enterprise GTM, recruiting help, and data/measurement rigor (seen across UiPath, Looker, CrowdStrike, Duolingo).
- Quantified outcomes: multiple CapitalG-backed companies reached IPOs or exits (Lyft 2019; UiPath 2021; CrowdStrike 2019; Duolingo 2021; Looker $2.6B; Credit Karma $7.1B).
- Expectation-setting: CapitalG operates independently from Google; founders should not assume privileged product/ads access (neutral constraint noted in CapitalG materials). https://capitalg.com/about
Market Positioning, Differentiation, and Competitive Landscape
CapitalG occupies a selective, growth-stage niche between corporate venture vs traditional VC, leveraging Alphabet-enabled advantages while competing with high-velocity and capital-rich growth investors. Founders should weigh speed and scale versus strategic resources and patient capital.
CapitalG operates as Alphabet’s independent growth fund, positioned between corporate venture vs traditional VC: a single-LP (Alphabet) backer with a returns-first mandate. In the CapitalG competitive landscape, core peers include GV, Insight Partners, Tiger Global Growth, Accel Growth, and Salesforce Ventures. The competitive map shows CapitalG concentrating on selective Series C+ investments with larger checks and hands-on scaling support, while GV’s multi-stage practice prioritizes broad coverage and high velocity. Portfolio overlap is minimal—only Gusto and Pindrop are shared—underscoring distinct mandates. Quantitatively, GV manages $8B+ AUM and often completes 70+ deals/year, whereas CapitalG’s pacing is intentionally tighter (≈10–15 deals/year) but quality-skewed, highlighted by nine unicorn investments in 2022 and exits such as Looker ($2.6B), Lyft, and CrowdStrike.
CapitalG’s sustainable advantages stem from privileged access to Google product specialists and data resources, brand signaling that de-risks enterprise adoption, and deep, patient follow-on capital. Sector strengths center on enterprise software, data/AI, cybersecurity, and fintech with strong GTM enablement. Limitations and perceptions include potential conflicts of interest with Alphabet products, diligence scrutiny for integrations that may restrict non-Google stacks, and founder concern about strategic control—even though CapitalG invests for financial return. Most threatening competitors to its deal flow are speed-and-scale growth investors (Tiger Global Growth in bull markets; Insight Partners with $90B+ AUM and a robust operating platform) that can pre-empt rounds. In CapitalG vs GV, GV competes earlier; overlap emerges mainly when GV follows on into later rounds.
Competitive map: Growth investors and differentiators
| Firm | Stage Focus | Typical Check Size | Differentiator |
|---|---|---|---|
| CapitalG | Growth (Series C+) | $25M–$100M | Alphabet/Google advisors, enterprise GTM expertise, patient single-LP capital |
| GV (Google Ventures) | Seed–Series B (select later) | $5M–$20M initial | Independent, high velocity (70+ deals/year), broad platform support |
| Insight Partners | Growth to buyout | $20M–$300M | Scale-up playbook (Onsite), global capital depth ($90B+ AUM) |
| Tiger Global Growth | Growth/crossover | $20M–$200M+ | Speedy term sheets, crossover/IPO expertise; 300+ deals in 2021 peak |
| Accel Growth (Leaders Fund) | Growth | $20M–$75M | Founder-friendly approach, global network, disciplined pacing |
| Salesforce Ventures | Early–growth (strategic) | $5M–$100M | Salesforce ecosystem access, AppExchange distribution, enterprise intros |
Quantified comparisons: Fund sizes and deal volumes
| Firm | AUM/Fund Size (latest) | Deals per Year | Growth-Stage Deals/Year | Notable datapoint |
|---|---|---|---|---|
| CapitalG | Not publicly disclosed (multi-billion) | ≈10–15 | ≈10–15 | 9 unicorn investments in 2022; exits include Looker ($2.6B), CrowdStrike, Lyft |
| GV | $8B+ AUM | 70+ overall | ≈5–10 | 300+ portfolio companies; multi-stage mandate |
| Insight Partners | $90B+ AUM | ≈150 | ≈100 | Flagship Fund XII $20B (2022) |
| Tiger Global Growth | PIP 15 $6.7B (2023) | 300+ (2021 peak) | ≈200 (2021) | 2023–24 pacing slowed materially |
| Accel Growth | Leaders/Growth fund ≈$1.5B (2021) | ≈40 | ≈15 | Global growth franchise |
| Salesforce Ventures | AI Fund $2B (2023) | 50+ | 10–15 | Strategic AI and cloud focus |
SWOT-style positioning
- Strengths: Alphabet/Google product and data access; brand signaling; patient, deep follow-on capital; enterprise GTM muscle.
- Weaknesses: Perceived conflicts of interest; potential restrictions on non-Google integrations; selective pacing can miss fast rounds.
- Opportunities: AI/ML infrastructure and data platforms; cybersecurity; fintech modernization; adoption tailwinds from Google Cloud.
- Threats: Price/pace competition from Tiger Global and Insight; founder preference for neutral cap tables; macro-driven crossover pullbacks.
Strategic implications for founders
- Choose CapitalG when enterprise GTM acceleration, Alphabet access, and patient scaling capital outweigh pure speed.
- Choose GV earlier; limited CapitalG overlap; consider neutrality if sensitive to corporate ties.
- Consider Insight/Tiger for rapid, large growth rounds; Salesforce Ventures for ecosystem distribution, balancing potential integration constraints.
