Seed-stage venture firm NFX, created for Founders by Founders based in San Francisco and Israel, announced on Tuesday a $450 million Fund III dedicated solely to seed and pre-seed-stage startups, making it the largest fund of its kind to date.
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NFX was founded in 2015 by serial entrepreneurs who founded and built 10 companies that exited for more than a cumulative $10 billion. They also have invested in companies like Lyft, Doordash, Patreon, Poshmark, Mammoth Biosciences, Twist, Trulia, lastminute.com, and others. NFX invests in businesses driven by network effects and manages $875 million in total assets.
"At NFX, we lead with a Founder-first mindset because we were Founders ourselves. The early days of a company are many of the most critical and challenging. Founders not only need smart support from those who've lived this life, they need access to a robust network, practical tools and a highly sought-after and engaged community. We see so many exciting opportunities ahead and are now looking forward to continuing to support even more founders in the future," said Pete Flint, NFX General Partner.
Fund III is projected to support an additional 70 companies whose founders specialize in fintech, marketplaces, gaming, and proptech sectors, and increases investment in tech-bio and crypto. At $450M, Fund III ranks as the firm's largest to date, having raised $275 million for Fund II in 2019 and $150 million for Fund I in 2017. NFX leads or co-leads investments and is the first institutional investor in 95% of the companies it backs and roughly 15-20% of their investments are in pre-seed.
