Xfund Company Profile

Background

Xfund is an early-stage venture capital firm established in 2011, dedicated to supporting entrepreneurs who think laterally and experiment across disciplines. The firm was co-founded by Patrick Chung and Hugo Van Vuuren as a pioneering partnership between leading venture capital firms—New Enterprise Associates (NEA), Breyer Capital, Accel Partners, and Polaris Partners—and esteemed research universities, notably Harvard University. Xfund's mission is to back technically-gifted entrepreneurs with a liberal arts mindset, emphasizing the importance of multidisciplinary abilities in building durable companies.

Key Strategic Focus

Xfund's strategic focus lies in identifying and investing in founders who possess a blend of technical expertise and a liberal arts background. The firm seeks out entrepreneurs with multidisciplinary abilities, believing that such individuals make more insightful innovators. Xfund does not limit itself to traditional sector or industry lines; its investments span various sectors, including consumer technology, enterprise technology, and healthcare. The firm targets early-stage companies, often serving as the first investor, and leverages its unique structure and network to deliver value that few other firms can.

Financials and Funding

Since its inception, Xfund has raised multiple funds to support its investment activities:

• Xfund 1 (2012): Launched as The Experiment Fund with an initial $10 million seed fund.

• Xfund 2 (2014): Closed with $100 million in committed capital. Existing limited partners NEA, Breyer Capital, and Accel Partners anchored the fund, joined by a diversified group of long-term institutional limited partners.

• Xfund 3 (2020): Closed an oversubscribed fund at $120 million, led by NEA and Breyer Capital, with participation from a range of university, institutional, and individual investors.

The capital raised is intended to support early-stage investments in companies led by entrepreneurs with diverse backgrounds, particularly those with liberal arts educations.

Pipeline Development

Xfund has a diverse portfolio of investments across various industries. Notable companies in its portfolio include:

• 23andMe: A personal genomics and biotechnology company.

• Kensho: An artificial intelligence company specializing in financial analytics.

• Philo: An internet television company.

• Zumper: A residential real estate platform.

• Curebase: A healthtech company focusing on decentralized clinical trials.

• Natalist: A fertility company.

• NewtonX: A B2B research platform.

• Landit: A career path platform.

• AeroVect: An autonomous vehicle startup.

Xfund was the first investor in most of these companies and frequently reinvests with follow-on capital as they grow.

Technological Platform and Innovation

Xfund distinguishes itself through its commitment to supporting entrepreneurs who integrate technical talent with a liberal arts perspective. This approach fosters innovation across disciplines, leading to the development of groundbreaking companies. The firm's unique structure and unparalleled network enable it to deliver value that few other firms can, including access to leading venture capital investors, university faculty, and industry advisors.

Leadership Team

Xfund's leadership team comprises experienced professionals with diverse backgrounds:

• Patrick Chung: Co-Founder and Managing General Partner. Patrick co-founded Xfund in 2011 and has been instrumental in shaping its strategic direction. He previously served as a partner at NEA, leading the firm's consumer and seed investing practices.

• Brandon Farwell: General Partner. Brandon joined Xfund in 2017 and co-manages the firm alongside Patrick Chung. He brings over a decade of experience in venture capital and has worked closely with Patrick throughout his career.

• Harry Lewis: Venture Partner and Faculty Advisor. Harry is a Gordon McKay Professor of Computer Science at Harvard University and has been involved with Xfund since its inception, providing valuable academic insights and connections.

Leadership Changes

In 2016, co-founder Hugo Van Vuuren departed from Xfund following internal disagreements. The Limited Partners Advisory Committee voted to keep Patrick Chung in charge as managing partner and remove Van Vuuren from the fund's affairs. The matter was privately settled in February 2017.

Competitor Profile

Market Insights and Dynamics

The venture capital industry is highly competitive, with numerous firms vying to invest in promising early-stage companies. The market has seen significant growth, driven by technological advancements and increased entrepreneurial activity. Firms that can identify and support innovative startups, particularly those led by diverse and multidisciplinary teams, are well-positioned to succeed.

Competitor Analysis

Xfund operates in a competitive landscape alongside several notable venture capital firms:

• Andreessen Horowitz: A venture capital firm known for investing in technology companies across various stages.

• Founders Fund: A venture capital firm investing in companies building revolutionary technologies.

• Khosla Ventures: A venture capital firm focusing on early-stage companies in various sectors, including technology and healthcare.