Announcing Founder Collective IV

Our Mission: To Build the most aligned VC fund for founders at the seed stage

Today we are happy to announce that we’ve closed our fourth fund, Founder Collective IV, to continue our mission to build the most aligned VC fund for founders at the seed stage. With overwhelming gratitude to founders too numerous to mention, we have enjoyed a fantastic first decade. Now, as the economy enters a tough era, we hope we’re able to work with an equally impactful group of founders who will find weird and wonderful solutions to our current problems and invent a better world than we could ever have imagined.

We’re designed to be structurally aligned with founders

In our model, we invest with conviction at the seed stage and accept dilution on the cap table in future rounds; this lets us sit on the same side of the negotiating table with founders for the long term.

“Go big or go home” is a false choice

As a rule of thumb, for an acquisition to be material to a VC fund, it needs to be at least as large as the fund itself. This dynamic locks many large VC firms into a “billion or bust” mentality and can lead investors to put undue pressure on founders. Entrepreneurs should be ambitious, but they shouldn’t mistake their venture capitalist’s financial model for their own.

We are our biggest investor

Founder Collective’s team members are also its biggest investors. It is our belief that multiples are better than management fees, and we’re willing to put our personal capital on the line to test that proposition. This is a rare arrangement in the world of institutional venture capital and it allows us to always prioritize founders first in all of our decision-making.

This is how we can be helpful

After backing over 300 startups, we can provide a helpful perspective on many aspects of running a company, but honestly, there are many great VCs who can do the same.

Our mission is to be the most aligned VC for founders at seed. #ProudInvestor in @Uber @TheTradeDeskinc @Buzzfeed @Cruise @Diaandco @PillPack @SeatGeek & more.

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