O'Reilly AlphaTech Ventures is reborn to back bootstrapped companies
Venture firm O'Reilly AlphaTech Ventures has rebranded to INDIE, and is raising up to $50 million for a fund that will focus exclusively on backing bootstrapped companies.
Why it matters: The firm launched an experiment with this investing approach in 2015, but then wound it down amid limited partner discontent.
- The firm has made investments from $50,000 to $2 million and says it can write smaller or bigger checks, and is flexible on stage and structure.
Zooming in: Most of INDIE's limited partners are new, per Roberts.
- When OATV raised its third fund, with a focus on its Indie.VC program, 80% of the investor base fled. It raised $25 million, compared to the $85 million for its prior fund.
- INDIE's first fund is expected to close at between $40 million and $50 million, according to a source familiar with the fundraising plans.
Zooming out: "If the unicorn era taught us one thing, it's that more isn't always the answer," managing director Roberts wrote in a recent blog post predicting a new era of leaner, profit-oriented startups.
- "More money doesn't solve fundamental problems. More people don't move faster. More features don't fix product market fit."
The bottom line: 2021's boom times killed Indie.VC, but the subsequent hangover is giving it a second life.