Since new VC funds are anecdotally thinner these days – and because we are in the midst of an economic upheaval that is changing investment patterns and shaking up the start-up industries – I called Zetta Jocelyn Goldfein (a regular TechCrunch) to chat about what your company is doing and what’s going on with AI investments.
Zetta’s new fund is about 50% larger than its previous pool of capital, which was about twice the size of its first fund. If you don’t want to do the math, Zetta’s first fund was worth $ 60 million and his second was $ 125 million.
As before, Zetta will invest in startups with a B2B focus and AI technology, but with more capital. I was curious about cadence: now that it has more capital, would the company issue more checks faster? Goldfein has kept the pace and strategy pretty much the same as previous funds, even though it has promoted an internal client who will start managing the new fund.
Why more money when things mostly look the same? Zetta would like to have the opportunity to issue larger checks and take on more personal responsibility so that more capital is needed. Defending these percentages again requires more capital. You have the idea.
At the beginning of our chat with Goldfein, it became clear that thanks to the uncertainty caused by COVID-19, it is an active time for startups that focus on AI. According to Goldfein, founders who have not yet raised their first capital “look at the financing window and think, Oh boy, if we thought we could move up in three months, maybe we should give it a try now. ”In addition, some companies that have already raised will return to the market to recharge. Goldfein said these startups are looking for “a little extra runway”.