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Founders don’t need to be full-time to start raising venture capital

“More than 50% of our founders still are in their current jobs,” said John Vrionis, co-founder of seed-stage fund Unusual Ventures.

The fund, which closed a $400 million investment vehicle in November 2019, has noticed that more and more startup employees are thinking about entrepreneurship as the pandemic has shown how much room there is for new innovation. To gain a competitive advantage, Unusual is investing small checks into founders before they’re full-time.

Unusual, which cuts an average of eight checks per year into seed-stage companies, isn’t doling out millions to every employee who decides to leave Stripe. The firm is conservative with its spending and takes a more focused approach, often embedding a member from the firm into a portfolio company. It’s not meant to scale to dozens of portfolio companies a year, but instead requires a methodical approach.

One with a healthy pipeline of companies to choose from.

In an Extra Crunch Live chat, Vrionis and Sarah Leary, co-founder of Nextdoor and the firm’s newest partner, said lightweight investing matters in the early days of a company.

“There were a lot of teams that needed capital to start the journey, but frankly, it would have been over burdensome if they took on $2 or $3 million,” Leary said. “[New founders] want to be in a place where they have enough money to get going but not too much money that they get locked into a ladder in terms of expectations that they’re not ready to take advantage of.” The checks that Unusual cuts in pre-seed often range between $100,000 to half a million dollars.

Leary chalks up the boom to the disruption in consumer behavior, which opens up the opportunity for new companies to win.

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Discuss the unbundling of early-stage VC with Unusual Ventures’ Sarah Leary & John Vrionis

This year has been everything but business as usual for the venture and tech community. And we still have a presidential election ahead of us.

So, why not listen to the aptly-named experts over at Unusual Ventures? Partners Sarah Leary (co-founder of Nextdoor) and John Vrionis, formerly of Lightspeed Ventures Partners, will join us on Tuesday, October 20 on the Extra Crunch Live virtual stage.

Thanks to all of you who have joined us for our series of live discussions that has included tech leaders like Sydney Sykes, Alexia von Tobel, Mark Cuban and many others (all recordings are still accessible for Extra Crunch subscribers to watch and learn from).

If you’re new, welcome! You’ll have a chance to participate in the live discussion if you have an Extra Crunch subscription.

Unusual Ventures’ investments span the consumer and enterprise space, including companies like Robinhood, AppDynamics, Mulesoft and Winnie.

For this chat, I plan to spend some time talking to Leary and Vrionis about how early-stage venture capital has changed with the rise of rolling funds, community funds and syndicates. Unusual Ventures claims “there’s an enormous opportunity to raise the bar on what seed-stage investors provide for early-stage founders,” so we’ll get into that opportunity as well.

And if we have time, we’ll discuss remote work, building in public and the U.S. presidential election.

So, what are you waiting for? Add the deets to your calendar (below the jump!) and join me next Tuesday.

Details

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How 6 top VCs are adapting to the new uncertainty

As the global economy grinds to a halt, every business sector has been impacted, including the linked worlds of startups and venture capital.
But how much has really changed? If you read VC Twitter, you might think that nothing has changed at all. It’s not hard to find investors …

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