Mates & Household Capital, a fund based by ex-Palantir CFO and son of IVP’s founder, unveils third $118M fund

Small VC corporations require deep belief, mutual assist, and long-term dedication among the many companions —a kinship that, in some ways, resembles a household dynamic.

Colin Anderson (Palantir’s ex-CFO and former analysis VP at Peter Thiel’s Clarium Capital) and John Fogelsong (the son of IVP co-founder Norm Fogelsong) didn’t have to domesticate a family-like relationship earlier than beginning their enterprise agency. A familial tie already existed between the 2 buyers: Anderson is married to Fogelsong’s sister. .

Once they first met in 2007, the now brothers-in-law bonded over their ardour for enterprise capital, finally main them to speculate collectively from their private capital. Due to their backgrounds, their networks in Silicon Valley had been deep and broad. Anderson’s observe document of scaling Palantir’s finance crew from one individual to 60 proved significantly instrumental within the pair’s skill to grow to be angel buyers  in a number of high-profile corporations. Entrepreneurs like Ryan Petersen, co-founder of the logistics startup Flexport, sought out Anderson’s experience in constructing their finance departments.  

By 2020, Anderson and Fogelsong determined to take their investing relationship to the following degree by launching their first fund with exterior capital. Their pitch to restricted companions was that they might lean into  their Valley  connections, particularly the Palantir community, to again quickly rising corporations needing a lift in constructing robust finance groups.  

That fund, which the agency considers its second automobile, closed at $91.5 million, properly above its preliminary goal of $60 million. 

Regardless of elevating capital from institutional LPs and trying to again startups with $20 million to $100 million in income, Anderson and Fogelsong needed to protect the ethos of getting an funding method that felt extra like that of a family-and-friends spherical of financing. So,they named their agency “Mates & Household Capital” to seize that spirit, their very own household connection, and Fogelsong’s roots in a outstanding Silicon Valley VC household.

To founders, their pitch is that they’re consultants in serving to startups construct out all issues finance.

“The chance we noticed was turning into the trusted companion for founders and CFOs as they scale their finance features,” Anderson mentioned. They’ve  helped portfolio corporations with points like constructing a monetary projection mannequin, crafting a numbers-driven fundraising pitch, and  interviewing CFOs when companies are prepared for such a key rent.

Apparently, that sort of recommendation is in excessive demand. Mates & Household’s final fund invested in corporations like Airtable, Anduril, Gusto, Peregrine and Verkada.

On Wednesday, the agency unveiled its third fund, at $118 million, bringing its complete funding, together with particular function autos, to over $350 million.

Like its earlier fund, Mates & Household’s  third fund can be used to put money into “basic B2B enterprise software program” corporations and {hardware} companies with recurring income parts.

“We see a brand new wave of {hardware} corporations,” Fogelsongsaid mentioned. “These corporations are delivering software program. It simply occurs to be in {hardware} type.”

Mates & Household’s first funding from its third fund, Gecko Robotics, exemplifies this method. The corporate builds AI-powered robots that examine bodily infrastructure, together with energy vegetation, bridges, dams, and battleships.

The agency’s newest fund will again eight to 12 corporations with no less than $20 million in income, writing checks that comprise 5% to 10% of the fund. As well as, Mates & Household will take tiny stakes in as many as 40 brand-new startups. That technique helps the agency construct a relationship with doubtlessly promising younger corporations and provides it the choice to speculate extra later.

“Many enterprise funds [write] bigger checks early on, after which [invest] smaller checks solely,” Anderson mentioned. “However we glance to extend our place as corporations get nearer to $20 million or extra in income.”

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