Pre-seed VC firm Afore Capital raises $150 million for its third fund
Afore Capital, a venture firm focused on pre-seed startup investing, has raised $150 million for its third fund.
Why it matters: The firm, which claims it has the largest dedicated pre-seed fund, says that having more capital now means it can take on more risk by investing even earlier, write bigger checks for a biggest portion of each round, and move faster thanks to a larger team, says co-founder Gaurav Jain.
- The fund is twice as big as its second, and three times its first.
Between the lines: "Seed funds are looking for traction before they invest — what we’re willing to say to founders is that we’re willing to go earlier," explains Jain.
- While pre-seed funding has historically been thought of as a sub-$1 million round just to get going, Afore argues that it should be a bit larger — $1-1.5 million — and make it possible for startups to leap straight to a Series A round (and skip on some dilution in the process).
The intrigue: Afore is also rolling out a new application system for potential investments, dubbed Afore Alpha, through which startups can get $1 million in capital via a SAFE note at a $10 million post-money valuation.
- Startups anywhere in the world can apply, and Afore says that those who get funding will receive the usual support and help they can expect from early-stage investors.
- Though the firm will continue to make some custom investments that don't conform to these terms, it expects Afore Alpha to generate the majority of its investments going forward.