The 10X Capital Newsletter

Sequoia's fellowship program for open source developers, Pretty Little Liars' star, Sasha Pieterse, on her new venture-backed startup, what subscription line financing can mean for fund managers, and much more.

Author

David Weisburd
February 20, 2024

The 10X Capital Podcast is a podcast focused on interviews with the world’s top Venture Capitalists and their Limited Partners.

Today’s Agenda 📋

  • 🔧 Emerging Manager Tools

  • 🗞 Venture Capital News

  • ✍️ Top Posts of the Week

  • 💰 Who’s Raising?

  • 🗣 What Investors Are Saying

  • 📈 Chart of the Week

Recent episodes 🎙

‎"The 10X Capital Podcast" with David Weisburd and Erik Torenberg | Startups, Venture Capital, and Limited Partners:

The 10X Capital in the news 🔎

Emerging manager tools 🔧

Venture capital news 🗞

The Alternative Asset Class Needs New Infrastructure — Who Will Build It? • F-Prime Capital

We create and invest in healthcare and technology companies that improve lives all over the world.

Founders, family offices step up to fill VC fundraising gap

Founders made up more than a third of the investors in the new vehicle, a departure from the LP makeup of earlier funds.

Foundry Group is shutting down and won't raise another fund

Foundry Group, an 18-year-old venture firm with nearly $3.5 B in assets, has quietly decided to shut down and not raise any more funds.

Why Sequoia is funding open source developers via a new equity-free fellowship

Sequoia Capital plans to fund up to three open source software developers annually, as part of an ongoing program it debuted last year.

The new realism in venture capital is healthy

Rising stockpile of ‘dry powder’ is a sign of private capital’s growing attraction as an asset class.

Pursuing ‘American Dynamism,’ Andreessen Horowitz Ups Its Game in DC

Breaking with industry custom, the VC firm has begun lobbying to help the defense-focused startups it invests in.

Top posts of the week ✍️

Janko Milunovic: Master List of Tips and Hacks on how to successfully communicate with investors.

Proven Strategies and Pitfalls to Avoid in VC Communication with Investors

Anne Seckinger: SAFEs, Pay-To-Play Provisions, & Down Rounds

For companies that raised substantial capital on SAFEs and aren’t tracking towards their original valuation goals, a new round with pay-to-play provisions may be an effective way to raise necessary capital.

Who’s raising? 💰

Partech closes its second Africa fund at $300M+ to invest from seed to Series C

Partech has closed its second Africa fund at €280 million ($300 million+), solidifying its position as the largest Africa-focused fund.

.406 Ventures secures $265M for fifth fund

The firm considers a number of factors when scouting new startups, like their plan for infrastructure, especially now that AI is everywhere.

Switzerland’s Wingman Ventures rebrands to Founderful, aims for a $120M fund

The Wingman Ventures, the Zurich-based pre-seed-stage venture capital firm that focuses on Swiss startups, announced today it is rebranding as Founderful. It has also raised $85 million for its new Fund II, with a target of closing $120 million in the next few months.

Accolade Gathers More Than $1 Billion for Three Funds of Funds

The firm has seen a dry spell in venture liquidity but consistent exits in growth equity

Beta Boom’s New $14.5M Fund Targets Underserved Populations

Beta Boom has recently closed its $14.5 million Fund II, with investments from Ally Bank, Pivotal Ventures (A Melinda French Gates Company), Bank of America, and Atento capital, among others.

NVNG Investment Advisors closes first fund of funds worth $50 million

Madison-based NVNG Investment Advisors announced this week it’s closed its first fund of funds with $50 million in commitments.

RW3 Ventures raises $60 million crypto VC fund with backing from Mubadala and Raptor Group

Founded by BitGo alum Pete Najarian, the fund was spun out of Jim Pallotta’s family office and will focus on real-world blockchain use cases.

What investors are saying 🗣

🎙 Andrew Frazer Smith, Founder of Bridge, on why [subscription lines] are important for fund managers and how they benefit the investment process.

“The main reason that they’ve been used is the operational benefits they provide. So rather than a fund calling on its investors’ capital every time it makes an investment—which usually operates on a basis of time of a capital call plus 10 days—it uses a subscription line…If one fund can draw down on a revolving line of credit on the same day or the next day to make an investment and another one says it’s going to take 11 days, then all things being equal, you’ll go with the former…It’s also beneficial to the investors in the fund…It’s far easier for them to manage their capital if they are, for example, receiving [semiannual] requests for capital.”

Andrew Frazer Smith, Founder of Bridge - online marketplace for subscription line financing

Chart of the week 📈