Krista Morgan of Stage Fund on Giving Startups a Second Chance and Navigating Distressed Assets

Published: 21 May 2024
on channel: The Capital Stack Podcast
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Krista Morgan, General Partner at Stage Fund, joins venture capitalist David Paul to discuss their unique approach to investing in early-stage technology companies that are unable to raise more funding. Stage Fund focuses on control acquisitions and provides a second chance for struggling companies by offering new capital and a new path forward. They often acquire distressed assets and work closely with founders to turn the companies around. Krista emphasizes the importance of alignment, accountability, and operational expertise in the success of these companies. She also discusses the challenges and opportunities in the emerging asset class of early-stage private equity. You can watch/listen to the podcast on YouTube, Spotify, and Apple.

Takeaways

Stage Fund specializes in control acquisitions of early-stage technology companies that are unable to raise more funding.
They provide struggling companies with a second chance by offering new capital and a new path forward.
Alignment, accountability, and operational expertise are crucial for the success of these companies.
The emerging asset class of early-stage private equity offers opportunities for new investment strategies and approaches.

Sound Bites

"We are a control investor, making control acquisitions of early-stage technology companies that are unable to raise more funding."
"The number of calls I get where people think they're at that place of getting a hard deal done, but actually being there are two very different things."
"We really like finding value in the chaos. Like I like chaos."

Chapters

03:13 The Stage Fund’s Approach to Investing

07:11 Challenges in Getting Deals Done

12:53 The Importance of Alignment and Accountability

25:31 The Future of Early-Stage Tech Investing


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