VC firm focused on 'sweat equity' raises $300 million for second fund

Share on linkedin The General Partnership, a venture capital firm that offers "sweat equity" contracts in addition to traditional term sheets, tells Axios that it's raised $300 million for its second fund.

TheGP is an exception to that rule, and was rewarded by LPs in a brutal fundraising environment for emerging managers.TheGP's predecessor firm was formed in 2018 by Dan Portillo, who had previously launched a group at Greylock that focused on non-exec hiring for portfolio companies. It was fairly unusual at the time, although has since been copied by many of Silicon Valley's top firms.for its debut fund.

For earlier-stage companies, such contracts are usually married to traditional fundraising rounds. For later-stage companies, or "breakout" companies in TheGP parlance, the services deal usually comes first and traditional capital sometimes comes later. Barnes says that 70% of TheGP's portfolio companies have both types of arrangements, while the firm currently has around 30 employees."The goal has been to unbundle venture services from venture capital, because you're very limited in what you can do from fund fees," Portillo explains. "We took what was a cost center for every other VC fund and turned it into a profit center.

Source: Tech Daily Report (techdailyreport.net)

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