Marc Andreessen, Sequoia once more again Kearny Jackson, this time in $65M Fund III

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Marc Andreessen, Sequoia once more again Kearny Jackson, this time in M Fund III


After securing $14 million for its second fund in 2023, early-stage VC agency Kearny Jackson is again with a 3rd fund, this time bringing in $65 million in capital commitments, together with from quite a few first-time institutional funds.

The bi-coastal Kearny Jackson invests in B2B SaaS and infrastructure in addition to fintech infrastructure, usually main or co-leading rounds.

“One of many issues that we emphasize with founders that launch with us is time to worth,” co-founding common associate Sriram Krishnan instructed TechCrunch. “We’re fairly lucky to have the LP combine that we do have, as a result of on the finish of the day, we wish to construct a previous seed-stage platform that has an outstanding model, but in addition that is ready to work as rapidly because the founders.” 

Krishnan, who did product administration stints at Tinder and Spotify, and his co-founding common associate, Sunil Chhaya, who was beforehand with Menlo Ventures and Tenaya Capital, say they haven’t any downside investing in a crew that’s each pre-revenue and pre-product.

Because of Chhaya’s background as a enterprise capitalist and Krishnan’s as a founder/operator, they drew curiosity from restricted companions like Sequoia and Marc Andreessen.

“Sunil and I’ve identified one another for a very long time,” Krishnan mentioned. “He comes from a dog-eat-dog world of Collection A and Collection B investing. Now we have a mix of background to put in writing larger checks, but in addition the expertise to assist these founders.”

The pair declined to reveal the names of all of the restricted associate traders within the new fund, nevertheless, they did say they included greater than three endowments, in addition to pension funds, together with Stepstone, and funds of funds. Sequoia, which invested in Kearny Jackson’s second fund, is again with a 5x dedication, they mentioned. 

Different LPs embody Bain Capital Ventures and Menlo Ventures, together with quite a few particular person traders, together with Andreessen (personally, not via Andreessen Horowitz), who additionally invested in Fund II, plus former GitLab CTO Eric Johnson, former Spotify CTO Andreas Ehn, Unit co-founder Itai Damti and Perception founder Jeff Horing.

The considerably bigger dimension of their third fund offers the duo extra leverage, however they’re glad they began small.

Now having an even bigger fund dimension, the pair can execute on their technique of gaining extra possession into their portfolio firms. Kearny Jackson targets 6% to 10% possession stake in firms, investing round $1.5 million in pre-seed and seed-stage startups. That’s smaller than the everyday 15% to twenty% stake most early-stage companies intention for, says Chhaya, which may assist them compete for offers.

Krishnan and Chhaya count on to put money into between 30 and 35 firms over the following three and a half years. They’ve already made one stealth funding in a startup led by an ex-Snowflake crew.

“Earlier than, we have been introducing our founders to guide VCs, and we’re now within the place to be that ourselves,” Krishnan mentioned. “Had we gone with an even bigger fund, I don’t assume our technique would have resonated as a lot. Right here, we will get the possession we would like and may also work with huge VCs or smaller VCs.”

Chhaya added that they’re “well-suited to help these founders on the early phases.” Consequently, founders usually joke that they get “two for the value of 1,” he mentioned. 

Notable investments from its first two funds embody database firm MotherDuck, engineering software program firm Cortex, insurance coverage brokerage Comulate, Ethereum protocol EigenLayer, developer instruments firm Sprig and office productiveness firm Rhythms.



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