As of 2019, the majority of venture firms – 65% – still do not have a female partner or GP, according to them, Pick up all.
So naturally, sometimes we hear about a new woman-led fund, our ears are sore.
today, New York Avid ventures Announces the launch of its $ 68 million Debut Venture Capital Fund. Addie Lerner – formerly an investor with General Catalyst, General Atlantic and Goldman Sachs – worked with the founders of early-level startups in the United States, Europe and Israel in 2020 with the goal of taking a hands-on approach Avid founded.
“We believe that investing in a founder’s company is a privilege that is earned,” she said.
Tali Vogelstein – a former investor at Bessemer Venture Partners – joined the firm as a founding investor soon after its launch and the pair were able to raise capital in 10 months time during the 2020 epidemic.
The newly formed firm has an impressive list of LPs since its first attempt. The Shusterman Family Investments and the George Kaiser Family Foundation are its anchor LP. Institutional investors include the Foundry Group, General Catalyst, 14W, Slow Ventures and LocalGlobe / Latitude through its BaseCamp initiative that backs emerging managers.
Avid also supports 50 founders, entrepreneurs and investors as LPs – 40% of whom are women – Mirror founder Brian Patnam; Getty Images co-founder Jonathan Klein; Founding partner of Acrew Capital Theresia Gouw and others.
Avid invests in the series A and B stages, and has so far invested in Alloy, NovaCredit, Rapid, Ladder, Nava and The Wing. Three of those companies have female founders – something Lerner said “quite naturally.”
“There can be diversity and be more systematically contrary to quotas or mandates,” she said.
In making those deals, the aviators partnered with top-tier firms such as Klein Perkins, Canapi Ventures, Jig Capital and Thrive Capital. In general, Avid intentionally does not lead to its first investment in startups, with its first investigation typically in the range of $ 500,000 to $ 1 million. It conserves most of its capital for subsequent investments.
“We like to position ourselves to earn the right to write a big check in a future period,” Lerner told ClearTips.
In the case of Rapid, Avid organized an SPV (Special-Purpose Vehicle) to invest in a recent series of unicorns. D. Lerner previously supported the company’s Series B round in General Catalyst and remains a board observer.
Prior to founding AVD, Lerner had helped deploy over $ 450 million in software, fintech (Rapid and Monzo) and 18 investments in consumer Internet companies spanning North America, Europe and Israel.
When it comes to areas, AVD is particularly focused on backing FinTech, consumer internet and software companies in the early stage. The firm intends to invest in about 20 startups over a period of three to four years.
“We want to take our time, so we can be as hands-on as we want to be,” Lerner said. “We are not looking back at 80 companies. Our goal is to drive outstanding returns for our LP. “
The firm sees itself as an “outsourced strategic CFO” as an expansion of its portfolio companies’ teams. Lerner and Vogelstein aim to provide companies they work with with strategic development modeling, unit economics analysis, talent recruitment, customer introduction and business development support.
“We try to improve our relationships and prove our value well before a deep investment,” Lerner said. Avid leverages its team’s prior data-driven experience to employ a “metrics-driven approach” so that a startup can deeply understand its “economics”. It “gets in the trenches” with the founders to help a company grow.
Ed Zimmerman, chair of the technology group at Lowenstein Sandler LLP in New York and an assistant professor of VC at Columbia Business School, is an avid investor.
He told ClearTips that due to his role in the enterprise community, he is often a lawyer for a company or fund and will run for alumni in deals. The response from several people in his network indicates Lerner to be “exceptionally considerate of the deals”, with an entrepreneur describing him as “one of the smartest people I’ve met in a plus-venture in a decade” Have done
“I’ve seen myself in deals and then I’ve seen the founders turn down very well-branded funds to work with Addie,” Zimmerman said, noting they were impressed by his intelligence and integrity Huh. “… Addie will meet and win and be invited to great deals as he makes an indelible impression on those who have worked with him and the data is remarkably consistent.”