Introduction
In a significant development for the venture capital landscape, Freestyle Capital has announced the successful closure of its fourth fund, which boasts an impressive size of $90 million. This latest milestone marks a notable increase in the firm’s investment capacity and is accompanied by the promotion of Jenny Lefcourt to general partner. We take a closer look at this story and explore what it means for the future of early-stage startups.
A History of Growth
Freestyle Capital has come a long way since its inception, founded by serial entrepreneurs Josh Felser and Dave Samuel in 2011. The duo had previously built and sold several companies together before transitioning to angel investing. Their first fund of $26 million was raised in 2011, followed by subsequent funds growing in size: $40 million (Fund II) in 2013 and $60 million (Fund III) in 2015.
"We actually thought we might never add somebody else, since we know each other so well," Felser noted in an interview. "But when you believe the people you bring in are going to increase the pie… then it was easy for us to decide to do it."
The New Fund and Jenny Lefcourt’s Promotion
With the new $90 million fund, Freestyle Capital aims to take on bigger risks and invest more capital. The addition of Lefcourt as a general partner is seen as a significant move, allowing her to share equally in decision-making and economics with Felser and Samuel.
Lefcourt, who co-founded WeddingChannel.com and Bella Pictures before joining Freestyle, noted that she was initially hesitant about the title but eventually accepted it after realizing its value. "I joined part-time and I remember Dave not being comfortable with me having the title partner at first," she said.
The promotion is also seen as a strategic move to attract more women and underrepresented founders to invest in. Lefcourt emphasized that since joining Freestyle, Felser has backed more female founders than she has.
A Focus on Seed-Stage Startups
Despite changes in the partnership dynamics, Freestyle Capital remains committed to its core focus: backing seed-stage startups with initial investments ranging from $1 million to $1.5 million. Notable investments from previous funds include Intercom, Patreon, Narvar, Digit, Wag, Betterup, and Airtable.
"We started at one place and ended at another," Lefcourt said, reflecting on her journey with Freestyle. "I joined part-time and I remember Dave not being comfortable with me having the title partner at first."
A Look Ahead
With its expanded fund size and strengthened partnership, Freestyle Capital is well-positioned to continue supporting early-stage startups. The firm’s commitment to investing in more women and underrepresented founders will likely have a significant impact on the startup ecosystem.
"We want to take bigger risks and invest more capital," Felser emphasized. "Adding Jenny was a huge impetus for raising more capital."
Conclusion
Freestyle Capital’s new $90 million fund and promotion of Jenny Lefcourt to general partner are significant developments in the venture capital space. The firm’s focus on seed-stage startups, combined with its commitment to investing in diverse founders, will undoubtedly make it a major player in the startup ecosystem.
