Unusual Ventures: A New $160 Million Seed Fund Focused on Helping Entrepreneurs Learn Fast
In a bid to revolutionize the way startups are supported, Jyoti Bansal, the founder of AppDynamics, which he sold for $3.7 billion just as it was about to go public, and John Vrionis, a former venture partner at Lightspeed, where he invested in companies like MuleSoft, Nimble Storage, and Bansal’s AppDynamics, have announced the launch of Unusual Ventures, a new $160 million seed fund. The duo aims to bridge the gap between early-stage investing and providing hands-on support to entrepreneurs.
A Unique Approach to Early-Stage Investing
Bansal and Vrionis believe that many larger funds have moved towards making bigger investments, leaving a vacuum in the seed stage market. Moreover, they argue that smaller investors often lack the resources to provide meaningful support to fledgling companies. To address this issue, Unusual Ventures will take a more personalized approach, focusing on providing regular classes and hands-on support to its entrepreneurs.
The Unusual Ventures Academy
At the heart of Unusual Ventures’ strategy is the so-called Unusual Ventures Academy, which will consist of two cohorts per year, each comprising eight companies. The academy will bring together master practitioners who will lead three- or four-hour in-person sessions over a six-week span. Each session will focus on one particular kind of challenge that startups face, and founders will be encouraged to create their own solutions and teach them to the other participants.
Hands-On Support
Unusual Ventures will also offer its startups a range of hands-on support services, including recruitment help to hire the right engineers from the get-go, legal assistance, and other infrastructure services. This approach is designed to enable founders to focus on building their products without getting bogged down in administrative tasks.
A Different Funding Model
Another innovative aspect of Unusual Ventures is its funding model. Unlike traditional venture capital funds, which are often backed by insurance companies and pension plans, Unusual Ventures will be funded by nonprofits, including historically black colleges and universities, foundations, endowments, and health-related institutions. This approach allows the fund to prioritize giving back to the community when a company has a successful exit.
Supporting Unusual Founders
Bansal and Vrionis are also committed to supporting unusual founders, encouraging and welcoming entrepreneurs from diverse backgrounds, histories, mindsets, ideas, and people. They believe that this approach will lead to more innovative and disruptive startups.
Early Stage Investments
So far, the fund has made four investments, with two in the enterprise space, one consumer marketplace play, and one company in the crypto space. While Unusual Ventures is still at an early stage, its founders are confident that their unique approach will make a significant impact on the startup ecosystem.
A New Era for Early-Stage Investing
Bansal and Vrionis’s decision to launch Unusual Ventures reflects the evolving needs of startups in today’s market. As larger funds focus on making bigger investments, there is a growing need for more personalized support at the seed stage. By providing regular classes, hands-on support, and a different funding model, Unusual Ventures is poised to revolutionize the way startups are supported.
Key Takeaways
- Unusual Ventures is a new $160 million seed fund launched by Jyoti Bansal and John Vrionis.
- The fund aims to bridge the gap between early-stage investing and providing hands-on support to entrepreneurs.
- Unusual Ventures will offer regular classes, hands-on support services, and a different funding model.
- The fund is committed to supporting unusual founders from diverse backgrounds.
Conclusion
Unusual Ventures represents a new era in early-stage investing. By focusing on personalized support and a unique funding model, the fund is poised to make a significant impact on the startup ecosystem.