TL;DR:
- The House Fund announces the closure of Fund III with a substantial $115 million in funding.
- UC Berkeley professor Ken Goldberg joins The House Fund as a part-time partner, strengthening its ties with academia.
- Fund III’s primary focus is on AI startups associated with UC Berkeley, including alumni, students, and faculty.
- Approximately 70% of Fund III will be allocated to pre-seed stage startups, while seed and Series A rounds will also be considered.
- The House Fund, launched in 2016, is the first-ever fund dedicated to Berkeley startups and is backed by UC System and UC Berkeley endowments.
- The fund currently manages $330 million, with over 100 follow-on investments in its portfolio.
- Startups backed by The House Fund gain access to technology, mentorship, talent, and valuable Berkeley connections.
- An accelerator program offers selected companies a $1 million investment, a $10 million SAFE note, and early access to tech from partners like OpenAI and Microsoft.
Main AI News:
In the realm of venture capital, where innovation meets investment, The House Fund stands tall as a pivotal force within the UC Berkeley startup ecosystem. As it embarks on its latest chapter, Fund III, with a freshly secured $115 million in capital, the fund solidifies its commitment to nurturing and propelling Berkeley-affiliated startups, particularly those pioneering the field of artificial intelligence.
With a keen eye on the future, The House Fund welcomes Ken Goldberg, a luminary in the world of robotics and a distinguished UC Berkeley professor, as a part-time partner. This strategic move underscores the fund’s dedication to bridging academia and entrepreneurship, a testament to its unique position as the home for the Berkeley startup community.
Jeremy Fiance, the managing partner at The House Fund, expressed their mission succinctly, stating, “We support Berkeley people in their entrepreneurial journey, whether that’s joining startups, starting startups, advising them, providing feedback on their ideas well before any startup materializes and so much more.”
Fund III’s investment mandate is clear: AI startups affiliated with Berkeley are the focal point. This encompassing scope includes alumni, faculty, PhD candidates, postdoctoral and grad students, recent graduates, undergraduates, or even those who’ve chosen a different path and become dropouts. It’s an inclusive approach that mirrors Berkeley’s ethos of innovation and diversity.
Approximately 70% of Fund III’s capital allocation will target startups at the pre-seed stage, a pivotal phase for early-stage ventures. However, The House Fund’s commitment extends beyond this, as they position themselves to lead, co-lead, and participate in seed rounds. Remarkably, they are also open to considering a select few first-round Series A investments for founders with a track record of previous exits valued at $500 million to over $1 billion.
Fiance elaborated on their investment strategy, stating, “We write first checks up to $2 million and reserve for follow-ons. We can write a check as small as $100,000 in a recently graduated founder or dropout and are fine being the only investor, for example.“
Since its inception in 2016, The House Fund has proudly worn the mantle of being the “first-ever fund” dedicated to Berkeley startups. It boasts a unique distinction as the only fund supported by both the University of California System Endowment and UC Berkeley’s campus endowment. With a current portfolio of $330 million under management, The House Fund has attracted the attention and investment of over 100 funds, reflecting the value it brings to the startup ecosystem.
Noteworthy investments from The House Fund’s previous funds include Anyscale, a trailblazer in distributed compute projects; Crowdbotics, a software development platform; and Ambi Robotics, a venture driven by none other than Ken Goldberg himself.
Jeremy Fiance emphasized the vast potential of their Berkeley network, stating, “There are roughly 600,000 Berkeley people — among the biggest alumni bases in the world.” The House Fund seeks to fulfill a longstanding desire among alumni for greater community engagement and seamless connections with Berkeley. As a public institution, Berkeley has historically grappled with resource constraints in meeting this demand. The House Fund emerged as a beacon, dedicated to servicing the needs of entrepreneurs and providing an array of resources for Berkeley AI founders to flourish in a collaborative environment.
Startups fortunate enough to receive support from The House Fund gain access to cutting-edge technology and mentorship from experienced LPs and advisors, tap into the talent pool of Berkeley’s campus and alumni network, and establish crucial connections with potential customers having Berkeley affiliations.
Beyond just capital injection, The House Fund runs an accelerator program designed to catapult selected companies to success. Each participant receives a $1 million investment, a $10 million post-money SAFE note, and valuable early access to tech from esteemed partners such as OpenAI, Microsoft, and Databricks. This accelerator also offers mentorship from Gradient Ventures, Google’s AI-focused venture fund, and The House Fund’s esteemed tech collaborators, further propelling startups toward greatness in the ever-evolving landscape of AI innovation.
Conclusion:
The House Fund’s successful closing of Fund III, with a focus on nurturing Berkeley-affiliated AI startups, reflects the fund’s commitment to bridging the gap between academia and entrepreneurship. This infusion of capital and expertise into the UC Berkeley ecosystem is likely to stimulate innovation and strengthen the position of Berkeley startups in the competitive AI market.
