Thrive Capital Raises $150 Million Fund, Joining Ranks of Young Venture Firms
Joshua Kushner’s Thrive Capital has become the latest upstart venture firm to raise a progressively larger fund this year. The New York-based fund quickly closed an oversubscribed $150 million fund in just ten weeks, following a $40 million raise last fall.
A Strategy Without Borders
Kushner is notoriously media-shy, but when asked about Thrive’s strategy, he revealed that the firm is geography and stage-agnostic. This means they’ll invest in companies at any stage, from seed rounds to later-stage deals. As an example, Thrive invested in Instagram at a $500 million valuation just days before the Facebook acquisition was announced.
"Our ambitions are to help build businesses that will transform traditional industries," Kushner explained. "We are opportunity-driven. We invest in companies as opposed to stage or geography." He also noted that there isn’t a particular range for check size, and existing limited partners like Princeton University took the majority of the fund.
A Promising Start
Thrive is only a few years old, but its rapid growth suggests early performance is promising. The six-person firm has invested in companies like Kickstarter, Instagram, Warby Parker, and Fab. Since Instagram’s sale to Facebook for $300 million plus 23 million shares, Thrive has done several undisclosed deals.
The Rise of Young Venture Firms
Thrive becomes one of many young venture firms that have raised bigger funds within the past year. Aydin Senkut’s Felicis Ventures closed a $70 million fund after a $41 million fund before. Another angel, Manu Kumar, upgraded to a $40 million second fund in July for his firm K9 Ventures.
Dave McClure’s 500 Startups is raising a $50 million fund, up from a previous $30 million fund. At the larger end of the spectrum, Andreessen Horowitz leveled up to raising $1.5 billion from an initial $300 million fund in 2009.
The Evolution of Venture Capital
All this activity comes despite critical discussion that venture as an asset class has performed poorly over the last decade, thanks to a long hangover from the first tech bubble and limited partners repeatedly investing without pushing for structural changes. Nimble, well-connected firms like Thrive are thriving while older, stodgier funds fall short.
The Impact on Venture Capital
The rapid growth of young venture firms like Thrive is changing the landscape of venture capital. As these upstart firms raise larger funds and invest in a wider range of companies, they’re forcing established players to adapt. The fact that Thrive was able to close an oversubscribed $150 million fund in just ten weeks suggests that investors are looking for new opportunities and willing to take on more risk.
The Future of Venture Capital
As the venture capital industry continues to evolve, it’s clear that nimble, well-connected firms like Thrive will play a major role. With their ability to adapt quickly and invest in a wide range of companies, they’re well-positioned to succeed in today’s fast-paced market.
The Rise of Joshua Kushner
Joshua Kushner is the son of real estate investor Charles Kushner and brother of Jared Kushner, owner of The New York Observer. He started Thrive while at Harvard Business School, not long after co-founding Latin American social gaming company Vostu.
The Future of Venture Capital: What’s Next?
As the venture capital industry continues to evolve, it will be interesting to see how young firms like Thrive continue to grow and adapt. With their ability to invest in a wide range of companies and raise larger funds, they’re poised to play a major role in shaping the future of venture capital.
Related Topics
- Startups: The core of TechCrunch’s coverage, startups are the driving force behind innovation.
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- Joshua Kushner: The founder and managing partner of Thrive Capital, Joshua Kushner is a rising star in the venture capital industry.
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