When a super angel gets its wings, it can mean one thing – a boutique fund has taken flight. At least that’s how Aydin Senkut‘s Felicis Ventures is positioning itself with a fresh fund worth about $70 million. This new figure is a significant jump from the firm’s previous $41 million fund and marks a major departure from Senkut’s early days as an angel investor.
From Angel to Boutique Fund
Senkut, an early Googler, has turned his hobby into a successful fund that now supports a team of five and over 80 companies. The Palo Alto firm is mirroring a trend sweeping across the industry, with early-stage funds growing in size. Other notable examples include:
- Dave McClure‘s 500 Startups, which recently raised $50 million
- True Ventures, which closed $205 million yesterday
- Seattle’s Madrona Ventures, which closed its biggest fund yet this week with $300 million
- First Round, which closed a $135 million fund last month, focused on supporting companies through their first 18 months of life
The Shift to Early-Stage Funds
This trend indicates that there is plenty of early-stage capital chasing companies despite the headwinds from Facebook’s lackluster IPO. Senkut reveals that he went for a bigger fund so that he could support more services like recruiting, marketing and PR, and design for Felicis’ portfolio companies. The firm has added additional partners like Renata Quintini and Sundeep Peechu, who bring legal and technical expertise.
A Boutique Fund’s Unique Angle
This is key because Series A rounds remain more elusive compared to the easier money for seed and angel funding. The ease with which many founders have been able to attract seed funding had raised concerns that there might be companies that are orphaned when they try to raise more capital in a ‘seed crash’ or a ‘Series A crunch.’ However, this hasn’t been the case so far.
Felicis Ventures’ Approach
Despite the amount of early-stage capital chasing startups, Senkut says Felicis has a unique angle in focusing on health, education, mobile, e-commerce, and enterprise. He pointed to some of the fund’s more prominent investments like Finland’s Rovio, which Felicis went in on when it was worth about $200 million, and Practice Fusion, which is focused on building free, web-based electronic medical records.
Future Focus Areas
Felicis is taking a closer look at areas like bioinformatics and connected devices. Dropcam, a Wi-Fi-enabled video monitoring camera that saves HD video online, is an example of this strategy. Felicis supported the company in its seed and Series A rounds.
The Impact on the Industry
This trend indicates that there is plenty of early-stage capital chasing companies despite the headwinds from Facebook’s lackluster IPO. Senkut reveals that he went for a bigger fund so that he could support more services like recruiting, marketing and PR, and design for Felicis’ portfolio companies.
Conclusion
Felicis Ventures’ new fund is a significant development in the evolution of early-stage funds. With its unique approach to investing and focus on specific sectors, the firm is well-positioned to take advantage of this trend and continue to grow its portfolio.
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