NFX Launches $450M Fund III for Pre-seed and Seed-stage Startups

UTC by Bhushan Akolkar · 3 min read
NFX Launches $450M Fund III for Pre-seed and Seed-stage Startups
Photo: Depositphotos

Venture fund NFX said that Fund III is its largest fund to date. It is dedicated to supporting a small group of startups at the earliest stage of their development.

On Tuesday, October 5, leading seed-stage startup fund NFX announced the $450 Million Fund III entirely dedicated to pre-seed and seed-stage startups. This makes it one of the largest funds of its kind to date.

Founded in 2015, NFX has built 10 such companies that have given a cumulative exit of over $10 billion. Previously, NFX has invested in popular companies like Doordash, Lyft, Poshmark, Patreon, Trulia, and others. as per the announcement, NFX manages more than $875 million in assets under management (AUM).

NFX aims to specifically support businesses based on network effects. NFX serves as the number 1 source of information for network effects. Besides, it also pairs this knowledge with other resources thereby helping founders to take their idea to IPO. With this new fund, NFX seeks to build a stronger network and services helping founders to grow quickly in this competitive market. Speaking of the development, Pete Flint, NFX General Partner said:

“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”.

NFX $450 Million Fund III

NFX notes that its Fund III will support an additional 70 companies. It will specifically focus on companies operating FinTech, tech-bio, proptech sectors, gaming, marketplaces, and crypto. Fund III is so far NFX’s largest fund to date.

NFX said that it’s committed to growing its tech-bio portfolio. As a result, it has promoted Omri Amirav-Drory, Ph.D. and Founder of NFX backed Genome Compiler and VC fund to General Partner of NFX.

Furthermore, NFX has also strengthened its crypto expertise. Last year, Morgan Beller joined as a general partner to this division. Beller is also the co-founder of Facebook’s crypto project Diem. Speaking of the development, he added:

“You can’t have crypto without network effects. Understanding network effects – and the ability to bake in certain principles from the pre-seed/seed stage – gives crypto founders a real advantage. No one is better at understanding that than the NFX team”.

NFX said that it will bring its best effort in supporting a small group of founders at an early stage of development. Having grown its team, NFX has also opened its offices in San Francisco, Israel and Palo Alto.

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Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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