New York-based venture capital firm, Twelve Below, has successfully closed on $108 million in capital commitments for pre-seed and seed investments. The firm, founded by Taylor Greene and Byron Ling, aims to adopt an “old-school approach” to venture capital, focusing on trust, high conviction, and high ownership. Their strategy involves leading or co-leading pre-seed and seed financings with the goal of securing a 10% to 15% ownership stake in core investments.
Key Takeaway
Twelve Below has secured
08 million in capital commitments for pre-seed and seed investments, with a focus on building trust and maintaining high ownership in their portfolio companies.
Investing in New York City Startups
Twelve Below primarily invests in startups based in New York City, targeting sectors such as fintech, healthcare, energy, SMB, and consumer areas. With their first fund of $50 million, they have already invested in companies like Accrue Savings, Odyssey Energy, Croissant, Campus, and Truehold. Notably, over 60% of their portfolio companies have successfully raised follow-on capital.
New Funds and Opportunities for Growth
The $108 million in capital commitments is divided into two new funds: an $80 million early-stage fund and a $28 million opportunity fund. This brings Twelve Below’s total assets under management to $160 million. Unlike traditional funds, the opportunity fund exclusively supports existing portfolio companies. This unique approach allows Twelve Below to further invest in their successful companies and capitalize on positive risk-reward pricing.
Backed by various entities, including large university endowments, institutional fund of funds, and large family offices, Twelve Below is well-positioned to support the growth and development of their portfolio companies. They are currently planning to invest in around 25 companies with their second fund, with the opportunity fund targeting between five and eight additional investments.
Ensuring Personalized Attention and Long-Term Success
One of the key differentiators of Twelve Below is their commitment to personalized attention and trust. Unlike many other venture capital firms, they do not have a platform team, allowing founders to work directly with Greene and Ling. They believe that trust is a critical factor in truly understanding a business and achieving significant impact. By maintaining strong relationships with their portfolio companies, Twelve Below aims to maximize both their own success and that of the founders.
Despite not having made any investments from the second fund yet, Twelve Below plans to make its first investment early next year. With their focus on trust, high conviction, and unique investment strategies, they are poised to make a significant impact on the New York City startup ecosystem.
