Atomic, which only funds the startups it launches, just closed its newest fund with $260 million – TechCrunch

Jack Abraham is very confident of what he is making. If you, as an investor, are going to bet exclusively on your own startup, well, you can’t be reckless or uncertain about Abraham’s model of San Francisco-based venture studio. Atom, It has since been launched nine years ago.

It all began with $ 10 million of Abraham’s own funds, the capital he sold to eBay in 2010 for $ 75 million, selling his first startup, a local shopping engine called Milo. Abraham left Wharton as an undergarment of $ 500,000 as a professor who believed that Abraham – whose father founded ComScore – would be a company-making machine himself.

The professor had a good instinct. After selling Milo at the age of 24, Abraham manufactured products for more than three years inside eBay and learned to lead multiple teams before moving out, leading to messengers betting on Uber and Panterest, and , He says, his idea is spreading around something. (Of these, he says, he “invented postmates. I literally gave the idea to the founder for the company. They were working on a B2B company at the time. I was quite early there; this led to Whole Food Helped to spawn the delivery item. “”)

He had many ideas – hundreds, he says – that not long after, he atomized with cofounder Andrew Dudum, a Wharton co-worker who is also the son of entrepreneurs and who Dropped out of college To join the startup world. (Dudum’s first stop was the then newborn start up Supported by Sequoia Capital.)

At first, Atomic worked in a company. The following year, it worked on two. By 2018, the organization had formed a team that could handle many of the back-end tasks, ranging from hiring startups to accounting, requiring 10 companies to launch. Impressed investors gave the firm $ 150 million to build more startups.

By then, Abraham and Dudum had brought in two other general allies: Chester Ng and Andrew Salaman. Salmon left in 2019 to launch his venture studio, Content, With Blue Apron founder Matt Salzburg. The same year, JD Ross, one of a handful of cofounders New public The company joined Opendoor as a general partner in nuclear.

The firm has only picked up the pace. Indeed, at this point, Atomic has created “dozens” of startups – including about one per month last year, Abraham says. It also closed at $ 260 million in new capital commitments, including a major university that now serves as its anchor investor, but would prefer not to be publicly named.

Citing “proprietary aspects” to the model, Abraham acknowledged that it operates “in the context of a fund rather than a holding company”, except to explain how the economics of nuclear work. Investors will inevitably be buying bets in nuclear.

Certainly, it is easy to appreciate the enthusiasm of Atomic’s investors, including early backers such as Peter Thiel and Mark Andreessen. Both Abraham and Dudam are compelling storytellers, as we have seen first hand in interviewing them at different times. The firm is also starting to see some exits.

A creation of the atom was the telehealth company Himes Made public In a deal through a blank-check company in January that cost the company $ 1.6 billion, and its shares have been rising ever since. As of this writing, the three-and-a-half-year-old organization – run by Dudum, doing double-duty as CEO of Himes and a general partner with Atomic – boasts a market cap of $ 2.9 billion.

In 2018, Forbes sold the company Dialpad to a voice-powered sales startup, TalkIQ, for which Forbes “reported to be”Less than $ 50 million“TalkIQ raised $ 22 million in total.

Abraham suggests more evacuations are coming. “We have many companies now coming in like growth and run rates, where they have the ability to go public as soon as next year,” he said.

One of those potential prospects is Replicant, An autonomous call center startup that has raised $ 35 million since its 2017 inception, including one $ 27 million series A round Back in September led by Northwest Venture Partners. Another nuclear startup, Homebound, A three-year home-building organization that handles everything from financing to construction, has also enjoyed Few moments, As well as attracted $ 53 million from investors.

Although Atomic does a “pressure test” on its ideas, not every startup has been a hit with users. A photo-sharing app called Ever was quickly shut down NBC reported The photos shared by the people were used to train the facial recognition system – technology that was offered to be sold to private companies, law enforcement and the military. Rested, a sleep-tracking specialist, was also laid off.

Meanwhile, Wi-Fi marketing company ZenReach, which gathered at least $ 94 million From investors through 2018, laid out 20% Of its employees in the same year. A CEO who was brought in by Abraham and who was previously a partner with Atomic has since moved into a role elsewhere.

If all its ideas did not set the world on fire, the atom has no shortage of others.

When asked about some areas where he gets the most opportunity to experiment, Abraham quickly “shuts down healthcare, finance, education, real estate, and other large industries, where the truth It is that when you are inside them, you understand how broken they are, and they are completely broken.

“You study them,” he says, “and then you wonder how it’s possible.”