unorthodox

Unorthodox Ventures is a venture capital firm founded in 2017 by Carey Smith, the former CEO of Big Ass Fans. The firm is headquartered in Austin, Texas, with additional offices in New York and Tel Aviv. Unorthodox Ventures focuses on investing in early-stage companies, particularly in the medical technology and construction technology sectors. The firm's mission is to partner with disruptive founders who aim to manufacture extraordinary products and build enduring brands. Unlike traditional venture capital firms, Unorthodox Ventures emphasizes operational support and long-term success over short-term financial returns.

Key Strategic Focus

Unorthodox Ventures specializes in seed and Series A investments, with check sizes ranging from $1 million to $5 million, often making follow-on investments. The firm targets companies that have moved beyond the idea stage and are ready to manufacture or have already entered the market. With a particular emphasis on medical technology—focusing on cardiology and gastrointestinal innovations—and construction technology, Unorthodox Ventures seeks to invest in companies that demonstrate both disruption and discipline. The firm provides hands-on operational support, leveraging its team's expertise in engineering, marketing, product development, and supply chain management.

Financials and Funding

As a privately held firm with a single limited partner, Unorthodox Ventures makes investment decisions quickly and focuses on long-term success rather than short-term cashouts. The firm has invested over $30 million in capital and provided thousands of hours of operational support to its partners. This unique structure allows for flexible investment strategies and a focus on building robust businesses without the pressure of managing external funds.

Pipeline Development

Unorthodox Ventures' portfolio includes companies like Vibrant Gastro, an Israeli firm that developed an FDA-cleared vibrating capsule to treat chronic constipation, and KEWAZO, a Berlin-based company that created LIFTBOT, a battery-powered, wireless robot designed to improve efficiency and safety in construction scaffolding. These investments reflect the firm's commitment to supporting innovative solutions in medical and construction technologies.

Technological Platform and Innovation

The firm's in-house team offers a broad array of capabilities, including engineering, product development, supply chain management, marketing, hiring, and sales. This collaborative model provides partner companies with the equivalent of an in-house product team, facilitating innovation and operational excellence. Unorthodox Ventures' approach has earned recognition, including a 2021 World Changing Idea honor by Fast Company.

Leadership Team

Carey Smith, the Founding Contrarian of Unorthodox Ventures, leads the firm. After bootstrapping Big Ass Fans and selling it for $500 million, Smith transitioned into venture capital with a unique philosophy that emphasizes practical help and innovative practices. The firm's team includes many of his former colleagues from Big Ass Fans, bringing expertise in industrial engineering and marketing to support invested companies.

Competitor Profile

In the venture capital landscape, Unorthodox Ventures distinguishes itself by focusing on operational support and long-term success rather than short-term financial returns. While many venture capital firms concentrate on software investments, Unorthodox Ventures typically does not invest in software firms and prefers that entrepreneurs retain significant equity and focus on becoming profitable quickly. This approach sets the firm apart from traditional venture capitalists who often have specific return expectations and manage outside money.

Strategic Collaborations and Partnerships

Unorthodox Ventures collaborates closely with its portfolio companies, offering space at its Austin headquarters free of charge and providing access to a 30,000-square-foot warehouse for storage and order fulfillment. The firm also assists overseas companies in opening their first American offices, demonstrating a commitment to fostering growth and expansion for its partners.

Operational Insights

The firm's hands-on partnership model allows it to build robust businesses in a fraction of the time compared to traditional venture capital approaches. By working shoulder-to-shoulder with its partners, Unorthodox Ventures aims to make them profitable within an agreed-upon timeframe, enabling founders to focus on their products without the distraction of relentless fundraising rounds.

Strategic Opportunities and Future Directions

Unorthodox Ventures continues to seek out companies past the idea stage that are ready to manufacture or have already entered the market, with an increasing focus on medical technology. The firm's resources allow it to lead and price financing rounds, but more importantly, it helps create business plans that determine how much money is actually needed to break even. This strategic approach positions Unorthodox Ventures to build enduring brands and support disruptive founders in bringing innovative products to market.