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Initialized Capital

Early-stage venture capital firm focused on the seed
Initialized Capital
Leadership team

Harjeet Taggar (Founder)

Alexis Ohanian (Founder)

Garry Tan (Founder & Managing Partner)

Jen Wolf (President)

Alda Leu Dennis (General Partner)

Brett Gibson (General Partner)

Number of Employees
0 - 50
Headquarters
San Francisco, California, USA
Established
2011
Social Media
Summary

Initialized Capital is a venture capital fund founded in 2011 and headquartered in San Francisco. It was founded by Alexis Ohanian, Harjeet Taggar, and Garry Tan.

As of 2021, it has raised more than $3.2 billion in assets. Initialized Capital has 23 portfolio companies it invested in at seed that have since become unicorns, including Coinbase, Ro, Cruise Automation, Instacart, Flexport, Opendoor, Algolia, Goat Group, Rippling, Truepill, and CoinTracker.


History

Initialized Capital is a venture capital firm that was founded in 2011 by entrepreneurs and angel investors Garry Tan and Alexis Ohanian. The firm is based in San Francisco, California and has invested in over 150 companies since its inception.

Prior to starting Initialized Capital, Garry Tan was a partner at Y Combinator, a startup accelerator that has launched many successful companies, including Dropbox, Airbnb, and Stripe. Alexis Ohanian was also a co-founder of Reddit, one of the world's largest online communities. Together, they saw an opportunity to invest in early-stage startups and help them grow into successful companies.

Initialized Capital began with a $7 million fund, which was primarily used to invest in Y Combinator companies. Some of the firm's earliest investments include companies like Instacart, Coinbase, and Zenefits. Over time, Initialized Capital's reputation grew as a valuable partner for entrepreneurs looking to build innovative companies.

In 2016, Initialized Capital raised a $115 million fund, which was used to invest in companies across a wider range of industries. Some of the firm's notable investments from this fund include Flexport, Opendoor, and Ro.

In 2018, Initialized Capital raised a third fund, totalling $225 million. This fund was used to invest in companies that are using technology to solve complex problems in fields like healthcare, finance, and transportation. Notable investments from this fund include Roam Robotics, Eterneva, and Future Family.

In addition to providing capital, Initialized Capital also offers its portfolio companies support and guidance through its network of experts and advisors. The firm has a team of experienced entrepreneurs, investors, and operators who work closely with the companies it invests in to help them succeed.

Today, Initialized Capital continues to be a leading venture capital firm, investing in companies that are using technology to solve real-world problems and improve people's lives. The firm's portfolio includes a diverse range of companies across a variety of industries, and its success has made it one of the most respected venture capital firms in Silicon Valley.


Investment criteria

Initialized Capital invests in early-stage startups that are using technology to solve real-world problems and improve people's lives. The firm has a clear set of investment criteria that it uses to evaluate potential investments.

  • Founders: Initialized Capital looks for founders who are passionate, resilient, and have a deep understanding of the problem they are trying to solve. The firm values diversity and looks for teams with complementary skills and experiences.
  • Market: The firm invests in companies that are targeting large and growing markets, where there is a clear need for their product or service. The market opportunity should be significant enough to support a large and sustainable business.
  • Product: Initialized Capital looks for products that are innovative, differentiated, and have a clear value proposition for customers. The firm prefers companies that have a clear path to revenue generation and are able to achieve product-market fit.
  • Technology: The firm invests in companies that are using technology to create new markets or disrupt existing ones. The technology should be defensible and have the potential to create a sustainable competitive advantage.
  • Traction: The firm looks for companies that have demonstrated early traction, whether through user growth, revenue, or other metrics. This demonstrates that there is demand for the product or service and that the team is able to execute effectively.
  • Potential: Initialized Capital invests in companies that have the potential to become category leaders and create significant value for all stakeholders, including investors, employees, and customers.

By evaluating potential investments against these criteria, Initialized Capital is able to identify promising startups and provide them with the support and guidance they need to succeed.


Values

Initialized Capital is known for its commitment to supporting early-stage startups that are using technology to solve real-world problems and make a positive impact on society. The firm is guided by a set of values that shape its investment philosophy and inform the way it works with its portfolio companies.

  • Founder Empathy: Initialized Capital values empathy and a deep understanding of the challenges that founders face. The firm's team has first-hand experience building and scaling startups, and it uses this experience to guide and support its portfolio companies.
  • Diversity and Inclusion: The firm is committed to promoting diversity and inclusion in its portfolio companies and across the broader tech industry. This includes supporting underrepresented founders and creating opportunities for diverse teams to thrive.
  • Radical Candor: Initialized Capital values honesty and direct communication. The firm believes that open and honest feedback is essential for helping founders to grow and improve.
  • Learning and Curiosity: The firm values continuous learning and curiosity about the world. This includes a willingness to explore new ideas, take risks, and embrace failure as a learning opportunity.
  • Impactful Innovation: Initialized Capital is committed to investing in companies that are using technology to make a positive impact on society. The firm believes that innovative solutions have the power to create meaningful change and improve people's lives.

Mission

The firm's mission statement is to "empower visionary founders to build impactful, world-changing companies".

This mission statement reflects the firm's commitment to supporting entrepreneurs who are passionate about creating positive change in the world. Initialized Capital is guided by the belief that the most successful startups are those that are founded by visionary leaders who are deeply committed to their mission.

The firm's approach to investing is designed to help founders build successful companies that have a lasting impact on society. This includes providing early-stage funding, as well as access to a network of advisors, mentors, and industry experts who can provide guidance and support.


Portfolio

The firm's portfolio includes companies that are using technology to create innovative solutions to real-world problems and make a positive impact on society. Some of the companies in Initialized Capital's portfolio include:

  • Coinbase: A leading cryptocurrency exchange that is making it easier for people to buy, sell, and store digital assets.
  • Instacart: A grocery delivery service that is helping people access fresh, healthy food more easily.
  • Ro: A healthcare company that provides online consultations and prescription medications for a variety of conditions.
  • Cruise: A self-driving car company that is working to create a safer, more efficient transportation system.
  • OpenAI: A research company that is focused on developing artificial intelligence in a way that is safe, ethical, and beneficial for all.
  • Opendoor: A real estate company that is making it easier for people to buy and sell homes online.
  • Patreon: A platform that allows creators to get paid for their work directly by their fans.
  • Flexport: A logistics company that is using technology to make global trade more efficient and sustainable.
  • Roam Analytics: A healthcare analytics company that is using machine learning to improve patient outcomes and reduce costs.
  • Pilot: An online accounting service that is making it easier for small businesses to manage their finances.

Initialized Capital's portfolio reflects the firm's focus on investing in companies that are using technology to create innovative solutions and make a positive impact on society. The firm's diverse range of investments includes companies in industries ranging from healthcare and finance to transportation and real estate, demonstrating its commitment to supporting entrepreneurs who are working to create a better future for everyone.


References
Initialized Capital
Leadership team

Harjeet Taggar (Founder)

Alexis Ohanian (Founder)

Garry Tan (Founder & Managing Partner)

Jen Wolf (President)

Alda Leu Dennis (General Partner)

Brett Gibson (General Partner)

Number of Employees
0 - 50
Headquarters
San Francisco, California, USA
Established
2011
Social Media