Hustle Fund, a pre-seed fund constructed by former operators and founders, has raised $30 million for a brand new fund, per SEC filings. Hustle Fund first filed paperwork for this fund, its second so far, in May 2019 with intention to lift $50 million. Its inaugural funding car closed at $11.5 million.
Hustle Fund was unable to remark as a result of it’s nonetheless in fundraising mode.
Hustle Fund was created by Elizabeth Yin and Eric Bahn, two former 500 Startups companions, with the purpose of investing in pre-seed software program startups. The agency has historically operated by investing $25,000 in an organization, often with a minimum-viable product, after which works with the workforce to assist them develop. It does round 50 investments per yr, according to its website.
It’s a small however centered investing strategy, one which has gotten Hustle Fund into offers corresponding to Webflow, NerdWallet and The Capsule Membership. However, as pre-seed grows and corporations elevate absurdly excessive first-check rounds, the necessity for larger checks may be obligatory for VCs to proceed entering into offers. Thus, an even bigger fund dimension for a fund a couple of years in is each sensible and anticipated.
Nonetheless, don’t anticipate Hustle Fund to be altering up its funding urge for food simply but. Yin joined us at Further Crunch a couple of months in the past to element her examine urge for food.
“I feel to a sure extent, placing cash into sooner experiments helps, but it surely solely goes to this point,” Yin mentioned. “You possibly can’t drive pace of execution with cash; it occurs via the pace of studying. And I feel that’s one thing that there’s an higher certain as to how a lot and what number of sources you may put into rising that pace of studying within the earlier phases.”