Apr 10, 2024 - Business

Floating Point raises $70 million for VC fund focused on complex sectors

Illustration of a hand watering a tree in a pot with money for leaves

Illustration: Sarah Grillo/Axios

Floating Point, an early-stage VC firm focused on startups in complex sectors, tells Axios that it's raised $70 million for its second fund.

The big picture: Its thesis is that there is still VC value to be found by supporting capital-intensive startups, but that the trouble came when firms began flooding money into startups that really were capital-light models.

  • "A lot of funds see their jobs as trying to identify a possible winner in the market and then pour money into it to make it the winner, spending on ad dollars and customer acquisition, instead of building a defensible business," Segel says. "I think we can find software-like growth in other sectors that do require a lot of capital, but spent more efficiently."

Catch up quick: Floating Point's co-founders are Eddie Segel and John Loser, who first met as quant traders at Bridgewater Associates before both helping to launch health insurer Oscar.

  • Portfolio companies include tech-enabled rollups in the car wash and orthopoedics practice spaces, plus a flood tracker for climate insurance and a timber supply chain management platform.
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