Contrary Capital’s $20M Fund II is all about community-first investments – TechCrunch

When Eric Tarczynski first built Contrary Capital, he realized that there was no venture capital firm focused on entrepreneurs within the university. So he launched a $ 2.2 million debut fund to exclusively support the world’s top talent or student entrepreneurs who are generating ambitious ideas from universities.

A few years later, all investors want to help their founders faster than their friends and enemies. On the contrary, we believe that the secret keeps us competitive by supporting the early founders. The company has a community of 350 entrepreneurial students at universities across the country that support the flow of transactions. Approximately 45% of the cohort is female and 65% are non-white. It gives the company the ability to learn about talented individuals before they connect with entrepreneurship.

“There’s a lot of money out there, and most of what they do is basically a swap transaction flow,” he said. “I don’t think we’ve helped the company in any way other than just finding and discovering it ourselves, or through our community.”

After 65 investments, Contrary Capital today announced that it has raised a second fund. This is a $ 20 million investment vehicle, reducing checks to pre-seed founders from $ 100,000 to $ 2 million.The size of the check is larger than Tarczynski’s initial estimate, but the total funding is Opposition’s initial goal of $ 35 millionThe move he said was done “intentionally, intentionally, and systematically” to grow the portfolio “slowly and steadily.”

But do you work slowly and steadily? A $ 500 Million Seed Fund World?

“We don’t really think we are competing,” he said. “Sure, prices are going up overall, but we’re just swimming in another pool, so we’re not going to be toe with that kind of group.” The reality is a community-centric community. Some may argue that it is an argument for the first company.

Tarczynski’s ability to attract prominent investors for his company may indicate that he is not alone in his vision. Investors in Contrary Capital include Door Dash Executive Gokul Rajaram, Facebook CPO Chris Cox, Github COO Erica Brescia, A16z GP Vineeta Agarwala, and Twitter CTO Parag Agrawal.

The company aims for 5-10% ownership per transaction. Investment performance includes Lightyear, Brightland, Aryeo, Chums, Anduril and Ramp.

“It’s the opposite of our secret employment weapons. They have set up a very unique company and are one of our most useful partners,” said Karim Atiyeh, co-founder and CTO of FinTech Ramp. Stated. The company was recently worth $ 3.9 billion.

Next high tech mafia

last year, Contrary Announces Contrary Talent, A new division within the fund, investing and supporting early career people and students to develop their technical ambitions. Contrary Talent, which currently has hundreds of members, hires top engineers, designers and managers from top technology companies and pairs them with top technology operators for mentorship and job consulting. It’s about giving startup employees access to a great mind before they get a pitch deck or know how to make it.

“As time goes on and more time is spent on-site on the technology campus, not only will the number of young founders increase, but the number of top engineers, designers and product managers interested in technology will also increase. I noticed that, “said Tarchinsky. When announcing a talent.

Over time, the arm becomes an increasingly large part of Contrary Capital, becoming a venture franchise rather than a single vertical focus.

Even if Star employees don’t start their own money, the talent has a database of some useful potential employment for portfolio companies to poach. Tarczynski has five of Lamp’s first 50 employees and internships One of its unicorn portfolio companies, Was affiliated with Contrary Capital.

Karim Atiyeh, co-founder and CTO of Ramp, describes Contrary as one of the most useful partners and calls the company a “secret employment weapon.”

One of the changes in Contrary is that we no longer have a demo day for founders running summer accelerator programs.

“I realized that doing things programmatically and annually, especially in this environment, is not a move,” said the investor. “I think the idea of ​​telling founders,’Oh, now’s the time to grow for your company’ when their timelines could be quite different, didn’t make much sense. “

So far, Contrary’s second close and expansion has clearly given confidence to the eight-man team. SEC filing shows that Contrary Capital has already raised a third fund.

Contrary Capital’s $20M Fund II is all about community-first investments – TechCrunch Source link Contrary Capital’s $20M Fund II is all about community-first investments – TechCrunch

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