Alexis Ohanian is leaving Initialized Capital – TipsClear
Reddit co-founder Alexis Ohanian is leaving Initialized Capital, a company he co-founded in 2011 with Gary Tan, as previously confirmed by Axios and TipsClear. The move comes weeks after Ohanian publicly withdrew from the Reddit board of directors, with Y Combinator president Michael Siebel replacing him.
Ohanian launches initialized capital In 2011 with a $ 7 million investment vehicle. Since then, the San Francisco-based firm has grown significantly and placed early-level bets at companies such as Flexport, Instacart, Cruise, Coinbase and CoDecademy. Recently, it closed a $ 225 million investment vehicle in 2018, its fourth fund to date.
In a statement for Tech Crunch, Ohanian is leaving the initialized capital to “work on a new project that will support the generation of Tech and beyond”, Kim-Mae Cutler, an early and former long Is the author of the time. According to the story of Axios, Ohnion is leaving initialized to work more closely on pre-seeded efforts. On its website, the preliminary description states that many teams talk to already launched products and plan to earn revenue.
“We understand that products and business models evolve, but it’s good to see in a very concrete way how the team is able to ship products and work together,” the firm wrote. If Ohanian raises the pre-seed corpus, it will be interesting to see how he changes this method.
Ohanian did not directly respond to a request for comment.
It is worth noting that partner departures in venture capital are rarely crystal clear breakups. As confirmed earlier, Ohanian will continue to be included in existing investment vehicles and portfolio companies due to the legal relationship. It is unclear whether Ohanian will continue to hold any of the board seats. Cry, A company that has Ohanian’s board seat did not immediately respond to a request for comment.
A major question is whether Ohanian’s departure will trigger a key figure clause in the firm’s limited partnership agreement. The “key man” clause, which is specialized in limited partner agreements, requires that certain specified people (usually the main partner in the firm) must be continuously employed in a firm and be active investors. When a key person clause is triggered, limited partners often have a range of tools, from controlling new hiring to ending their investment in a fund outright, to protecting their investment in a fund.
In this case, it would be surprising if Alexis Ohanian Since he is not a key figure among one of the major partners and the founder of the firm.
Ohnian stepped away from joining the day-to-day days of Reddit in 2018 and recently relinquished his board seat at the company following protests against police brutality. The co-founder urged Reddit to fill a seat with a black board member. Reddit eventually selected Y Combinator CEO Michael Siebel to fill the position.
Initial’s second founding partner Tan helped YC grow in its early days and helped build the renowned accelerator’s internal software system and late-stage funding program. “[Tan] Cutler said in a statement to TipsClear, “The future will continue to explore and finance great entrepreneurs, as they have done for almost a decade.” “” Gary and Alexis remain committed to each other as long-term friends and business partners. This firm fully supports Alexis in her future work. “
$ 500 million in initial capital is currently under asset management and has supported over 200 companies to date.
Additional reporting by Danny Crickton.