Kindred Ventures just closed its second fund with $100 million in capital commitments – TechCrunch

Two years after launching his $ 56 million debut fund, Kind VenturesThe San Francisco-based Pre-Seed and Seed-Stage-Venture Fund, founded by Steve Zhang and Kanye Maqubella, closed its second fund with $ 100 million in capital commitments.

Jung himself is a founder who later jumped into investment. In recent years, he cofounded Bitsky, A crypto-asset wallet startup and pre-installed schematic labs, was an early social music app brought into Rapsody in 2014, and co-produced the music streaming service imeem, which was later owned by Acquired By MySpace.

Zhang was also an early adviser to Uber, and personally invested in several breakout companies, including delivery company Postmates, synthetic biology company Zymergen, fitness company Tonal, and crypto exchange Coinbase – which rolled into Kindred’s first fund Was. .

Maqubela has similarly worn the hats of both founder and investor, spending six years as an investor with Seed — and before joining forces with Jung, an early-stage firm collaboration fund, as well as cofounding Heartbeat health – A platform that invites patients who are at risk of heart disease and other chronic diseases to talk remotely with specialists for care management.

The fund is notable, as it has zero in one or two areas of technology. Why interesting Well, because the enterprise landscape is now so crowded that institutional investors usually prefer to see seed-stage funds with specific sector focus or some kind of angle. This is a better way for these limited partners to better diversify their own investments and support managers who are investing in very similar deals.

In fact, Jung and Maqubela commitments from a mix of major university settlements, foundations, funding, and strategic investors in spite of Being a generalist is an achievement.

There is no doubt that investor interest is tied to some of its earlier investments, such as Coinbase – a condition that they underscore in the right entrepreneurial circles. Yet another aspect of his pitch, he says, also resonates with investors, which is his “high concentration, high confidence” approach. For example, part of their workflow involves creating a signal group or slack channel as soon as they invest in a team to have a consistent back-and-forward, and underline the meaning that Jung and Macbella There are extensions to a founding teams.

Kindred says it schedules weekly one-on-one chats until it funds its startup to set a product launch date, after which “we’re less rigorous, Leads to less frequent meetings, “Jung says, describing the firm’s approach as” programmatic and designed. “

But there is another way that Kindred tries to gain an edge over competitors, moving as close to the concept platform as possible – even helping startups build. Jang and Macbella point to Heartbeat Health and Bitsky, helping them incubate and spin out. Another startup that originated from their “formation investment” approach is a paid company called Otto, And they ask to be expected to come.

In some cases, they start the company and assemble the founding team. In other cases, they help a new founder evolve from concept to prototype so that the right cofounder can descend. What is sought in return is an ownership stake, which is between 5% and 20% percent of a company, with an average ownership position of 11%, they say, and as the firm matures Ticks upwards.

As at Deal Flow, they say they get their ideas through their own outreach, through the introduction from the founders in their portfolios, who excite them, and from employees of previous portfolio companies.

Interestingly, although the stakes they make broadly in focus, various topics emerge, including digital health, where they are supported in addition to Heartbeat Health and Tonal colour, Whose home tests can help people understand whether they are at risk of hereditary cancer, as well as whether they have been exposed to COVID-19. (Closed his latest round on this one $ 1.5 billion Evaluation earlier this month.)

Kindred focuses on the community, that too, with bets that include the audio social network Clubhouse. And Kindred is occasionally writing checks to the security company, which includes Anjuna Security, Which aims to protect applications and data from insiders by encrypting everything end-to-end.

Not final, finance is clearly an area of ​​interest. For example, in addition to Coinbase, Kindred has recently invested dYdX, An open trading platform for crypto assets that last announced that it had raised $ 10 million in Series B funding.

As to how two – who fully finance the 25 companies in their first fund – can cover the ground set to invest in this new, larger vehicle, Maqubela says the question is “half Over time “came in a conversation with his investors about this next fund. But their secret sauce is no great secret, they insist. They say that they are simply incredibly curious people who want to meet a founder when they want to, for which they want.

Jungi says, “Who ultimately comes to this and who am I,” we are worried about learning, it drives us. “

Although both have experience and know-how at this point in the vast majority of verticals, they are “absolutely novices” at times, and they don’t let that stop them, both say.

“If we are inspired by the founders, their intelligence, their dedication to a problem, and why they are doing so, we are happy to learn as soon as possible,” Jung provides. “We are very dutiful students.”