Gigi Levy’s NFX fund raised $ 275 million for a second fund
“Instead of measuring what you brought to the world and what you produced and how it affected people’s lives, you’re measured by how much money it’s worth right now,” says Levy.
NIF, the venture capital fund of entrepreneur and investor Gigi Levy, has raised a second fund of $ 275 million. NFX is a fund for investment in early stage companies located in California and Israel. The fund focuses on seed stage projects, and sometimes invests in pre-seed or A rounds, and invests in companies whose model is based on the “network effect” (see below).
Levy founded the fund together with James Courier and Pete Flint, both well-known and experienced entrepreneurs and investors from Silicon Valley. All three have a record of setting up and managing ten companies that have reached exits worth $ 10 billion. This allows the three to manage the fund in a unique model in which they do not take salaries. “We think it creates a very interesting match between us and the fund’s investors, and also between us and the founders, because our need for them to succeed is as high as their need to succeed,” Levy says in a conversation with Globes.
Levy says that one of the reasons he started the fund is to help Israeli entrepreneurs make connections in the United States, especially in Silicon Valley. “Over the years you made a lot of investments like Angel, and I found out that my girlfriends, what I miss most is the connection to the Valley, I’m relatively connected to the Valley, and I also sit on Facebook’s advisory committee, and I found out that this was one of the things I could help with. Says. “The companies we invest in are getting a bridge to the valley that is far beyond what I see other funds can give, and the developers will initially work from our offices in the valley if they decide to move here and help them recruit workers and connect them to the best suppliers.”
NFX started out in 2015 as an acceleration for start-ups that invested $ 120,000 in each company that participated in the program. The $ 150 million fund was raised in November 2017 and invested in 25 companies, with an average investment of $ 2 million in Sid. According to Levy, the current fund is one of the largest seed funds in Silicon Valley. This is intended to enable investment in a larger number of companies and also in larger amounts than in the past. Since the establishment of NFX Levi has stopped investing as an independent Angel. Most of the fund’s investors are public funds and universities from the United States and a few fund funds. In addition, the Fund has one institutional investor from