Trainer Funds Fund GP Brian Singerman and co -founder and CEO of Quiet Capital, Lee Linden, are looking for over $ 500 million for a new fund called GPX, three people who are familiar with their strategy told Techcrunch. Part of the GPX fund is likely to come from Founder’s Fund Founder Peter Thiel, these people said.
GPX uses a til -shaped strategy. The company will invest approx. 20% of the capital of the capital of funds managed by new VCs targeted at Pre-Seed and Seed Cotition Startups; The remaining capital will go to collaboration with new leaders on leading investments in later phase (probably in Series B) of their breakout companies.
It is a fairly different approval compared to how most venture companies work. While typical VC companies are investing in all their capital directly, GPX adopts elements of what is known as a fund-of-fund model, a smaller ordinary investment strategy where a company invests part of its capital in a portfolio of other funds rather than direct assets, such as startups. While a fund-of-funds offer limited partners a monastery method to gain access to under-radar or difficult to get businesses, a significant disadvantage is the double layer of fees: those charged by fund-of-funds and those of the underlying leaders.
While Capital Raised by Fund-Instunds Company hit a 16-year-old low last year, according to Pitchbook, Sangerman and Linden will bet that their personal brands, unique networks and a strategy that is only partially a fund finds will encourage limited partners to open their Checkbooks to GPX.
Singerman and Linden may be on something. As venture capital concentrates in the big funds, some of these companies’ best investors are no longer interesting in being a big machine. They leave the Behemoth companies to launch their investment equipment where they can be more quick and specialized.
GPX is aiming for the next generation of VC investors to identify and support many strong companies in the early phase, allowing Singerman and Linden’s company to co-lead later-phase investments in the new leaders’ most successful portfolio companies.
Here is GPX’s strategy that becomes particularly valuable: VCs in early stages often try to exercise Pro-Rata rights in later financing rounds (Series A, B and beyond), but their fund sizes typically prevent them from determining their percentage ownership in top priesting companies. When faced with such options, small VCs often crawl to raise vehicles with special purposes (SPVs) from their existing borders. Nevertheless, these processes are time -consuming, allowing other investors to beat after sought -after stock in the most sought -after offers.
With GPX’s capital behind them, new funds will have an opportunity not only to exercise their pro-tra-rijets, but also lead a later phase round.
The information previously reported that Singerman and Linden launch GPX but did not provide details of the fund’s target size and other strategy information.
Singerman and Linden did not respond to a request for how.
Editor’s Note: This story has been updated to reflect Peter Thiel’s engagement with GPX.