• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic

3

Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire

The Uber effect: The hot startup’s early investors are in demand

By
Erin Griffith
Erin Griffith
Down Arrow Button Icon
By
Erin Griffith
Erin Griffith
Down Arrow Button Icon
February 4, 2014, 11:47 PM ET
Add Fortune on Google for similar content.

FORTUNE — Say what you will about Uber’s cocky founder, its surge pricing, or its shady drivers. From a pure investment standpoint, the car service startup has been golden.

Some back-of-the-envelope math shows why: Take Uber’s $1.5 million angel round, led by First Round Capital and Lowercase Capital. It had a valuation of around $4 million pre-money. The company’s later rounds had valuations of approximately $40 million for its Series A in 2011 and $300 million Series B later that year. Six months ago, Uber raised money from Google Ventures and TPG at a $3.5 billion post-money valuation. The company’s revenues were around $125 million last year, which handily beat expectations.

The company’s success is having a halo effect for its early investors, who seem to be having no trouble raising new funds. In investment meetings, limited partners are preaching the gospel of Uber. “Anyone with Uber in their portfolio is looking pretty good right now,” one LP said.

In addition to First Round and Lowercase, that Angel round included backing from angel investors Mitch Kapor, Alfred Lin, Naval Ravikant, Babak Nivi, Cyan and Scott Banister, Shawn Fanning, Jason Calcanis, Mike Walsh, Oren Michels, and Josh Spear.

MORE: For CEO Nadella, signs of leadership potential

Shervin Pishevar was an early investor in Uber and later led Menlo Ventures’ $37 million round in the company. He’s used momentum on that and other investments like Tumblr and Warby Parker to raise money for his own fund, Sherpa Ventures. On Tuesday Dan Primack reported that Pishevar has held a first close on $87 million in commitments, beating its initial target of $60 million. The overall fund has a target of $150 million. One of Sherpa Ventures’ limited partners is TPG, which also invested in Uber.

Techstars CEO David Cohen, who invested in Uber’s first $1.25 million round, is in the market raising $150 million for his next fund (called Bullet Time Ventures 2014), according to an SEC filing from December. The new fund, his third, is a significant step up from his prior fund, a $25.6 million vehicle raised in 2012, and sources say he is nearing a close on the full amount. (Cohen declined to comment beyond the filing.)

Meanwhile, Founder Collective, which backed Uber’s Series A, is currently investing from its second fund, a $70 million vehicle which closed last year. It is almost double the size of its first fund. And First Round Capital is slated to raise a new fund in the second half of this year.

If the company continues its current trajectory, the Uber Effect may become the new Facebook Effect. Recall that Facebook’s early investors, including Jim Breyer, Marc Andreessen, Peter Thiel, Reid Hoffman, and David Sze, have been among the most successful investors for the past several years.

Surprisingly, given how close-knit the Silicon Valley investor community is, there’s only one investor Uber and Facebook (FB) have in common: Goldman Sachs (GS). Update: Uber and Facebook actually have two investors in common. In addition to Goldman Sachs, angel investor Matt Ocko made early bets in each company.

About the Author
By Erin Griffith
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

U.S. aircraft attack Iran in response to drone strike on cargo ship that Tehran called ‘ceasefire management’ as both sides wrestle for Hormuz control
PoliticsIran
U.S. aircraft attack Iran in response to drone strike on cargo ship that Tehran called ‘ceasefire management’ as both sides wrestle for Hormuz control
By Collin Binkley, Jon Gambrell and The Associated PressJune 26, 2026
6 hours ago
Red Lobster lost millions on its endless shrimp disaster. Shareholders say it was a ‘car crash’ designed to squeeze profits
LawRestaurants
Red Lobster lost millions on its endless shrimp disaster. Shareholders say it was a ‘car crash’ designed to squeeze profits
By Marco Quiroz-GutierrezJune 26, 2026
8 hours ago
Best Beef Organ Supplements (2026): Expert Tested and Reviewed
HealthDietary Supplements
Best Beef Organ Supplements (2026): Expert Tested and Reviewed
By Emily PharesJune 26, 2026
8 hours ago
Sam Altman and Donald Trump.
AIOpenAI
OpenAI agrees to stagger rollout of its most powerful model to only Trump-approved customers
By Eva Roytburg and Beatrice NolanJune 26, 2026
9 hours ago
gr
PoliticsElections
Anthropic and OpenAI waged a $27 million proxy war in a Manhattan congressional race. The winner told them both to get lost
By Sasha RogelbergJune 26, 2026
9 hours ago
Illustration of a bomb with the Bitcoin logo printed on it, against an orange background.
CryptoCryptocurrency
Bitcoin down 20% since May as Strategy fallout spooks investors
By Camila Grigera NaónJune 26, 2026
10 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
2 days ago
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
Success
Now worth $200 million, Sarah Jessica Parker credits being ‘one of eight kids that struggled financially’ for her hunger, ambition, and work ethic
By Orianna Rosa RoyleJune 24, 2026
3 days ago
Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
Economy
Ray Dalio says the U.S. just had its 'Suez moment'—and history says what comes next could end an empire
By Nick LichtenbergJune 26, 2026
22 hours ago
The bond market knows something about the $39 trillion national debt that Washington doesn’t
Economy
The bond market knows something about the $39 trillion national debt that Washington doesn’t
By Eva RoytburgJune 25, 2026
1 day ago
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
Economy
Trump turns on Big Oil donors who spent nearly $100 million to get him elected—now he wants the DOJ to investigate them for price gouging
By Tristan BoveJune 25, 2026
1 day ago
The richest 20% are the only ones powering the U.S. economy, says top economist, but their prospects are entirely reliant on teetering stock prices
Economy
The richest 20% are the only ones powering the U.S. economy, says top economist, but their prospects are entirely reliant on teetering stock prices
By Eleanor PringleJune 26, 2026
18 hours ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.