VC Firm Initialize Capital Management: San Francisco venture firm Initialized Capital Management has raised $230 million for its fifth fund which geared toward investing in growing up startups. the fifth fund (Initialized V) team consists of Alda Leu Dennis, Andrew Lee, Brett Gibson, Garry Tan, Jen Wolf, and Kim-Mai Cutler.
Initialized V: An overview
According to co-founder Garry Tan, Initialized VC Firm plans to help nearly 45 budding startups in the coming three years. Initialized V will mainly focus on seed investing means it will invest in the startups that will raise money for the first time and before it has launched its product or service.
Commenting on this move Garry Tan further added, “We love finding tomorrow’s unicorns.”
At present, the firm aims to invest around $1 million to $4 million. Initialized averaged 15 percent ownership stakes across the 45 companies backed by its fourth fund, which closed in 2018 with $225 million. The company is funding the said startups with $10 million to $20 million pre-money valuations.
The firm’s existing portfolio includes a variety types of startups, closely held ‘unicorns’ with valuations of $1 billion or more. The company made initial bets on the Startups like – autonomous vehicle startup Cruise Automation, cryptocurrency exchange Coinbase, digital lending platform Blend, grocery delivery company Instacart, human resources software maker Rippling, and telemedicine startup Ro.
Garry Tan also explained about the nature of his support, he said Initialized’s support which will be given to the startup founder will help the companies from connecting with the targeted customers to recruiting board members.
Brian Singerman who is a Founders Fund partner is also among the individual investors in Initialized V. He said that he looks for a good result when he evaluates a fund investment as Initialized holds an excellent track record.
While looking for the previous four funds which were raised by the company, they have posted annualized net internal rates of return of 39 percent, 18 percent, 38 percent, and 7 percent respectively, as recorded on 30 June 2020.