In a significant move, Aydin Senkut’s venture capital firm, Felicis Ventures, has announced the raise of $900 million across two new funds. The funds, which include a $600 million early-stage fund and a $300 million opportunities-type fund, demonstrate the firm’s continued success in identifying promising startups.
A Journey to Success
Felicis Ventures was initially launched with $4 million from Senkut’s own pocket. However, over the years, the firm has demonstrated remarkable growth, roughly doubling its investments with each new fund. The seventh and last flagship fund closed with $510 million in March of last year.
Strong Performance
Felicis Ventures’ strong performance can be attributed to its ability to identify and invest in successful startups early on. Some notable examples include:
- Shopify: Went public in 2015, valued at $185 billion
- Canva: Private market valuation hit $15 billion this spring
- Ayden: Publicly traded, boasting a market cap of $85 billion
Approach to Investing
Felicis Ventures’ approach to investing is centered around making both safe and more ambitious bets. The firm writes bigger checks to surer things, allowing it to gamble on new ideas. This strategy has proven successful, with the firm consistently delivering high returns for its investors.
Founder Relations
Maintaining a high net promoter score is essential for Felicis Ventures. The partners prioritize treating founders well, which in turn leads to glowing references and continued success. Senkut explains:
"We want founders to say, ‘This person has helped me so much, I would almost do anything to take money from this person or to put them on my board,’ versus the traditional method [wherein the VC says], ‘We’re writing a $50 million check and because we invested that money, we’ll dictate who’s on the board and what to do.’"
Jumping In Early
Peechu notes that Felicis Ventures often jumps in when the water is still cold. The firm invests in promising startups early on, recognizing that this approach can lead to significant returns. He explains:
"The fund strategy is not always to make the most amount of money. Sometimes, we’re investing $1 million or $5 million in a startup and hoping it hits it big."
Continued Success
Felicis Ventures’ continued success demonstrates its ability to adapt to changing market conditions while maintaining a focus on identifying promising startups. The raise of $900 million across two new funds solidifies the firm’s position as a leading player in the venture capital industry.
