Brian Singerman Seeks $500M for Innovative VC Fund
▼ Summary
– Brian Singerman and Lee Linden are raising over $500 million for a new fund, GPx, with potential backing from Peter Thiel.
– GPx will invest 20% in emerging VC funds targeting early-stage startups and the rest in later-stage investments (like Series B) with those managers.
– Unlike typical VC firms, GPx adopts a hybrid fund-of-funds model, which involves dual fees but offers access to under-the-radar investment opportunities.
– Despite a decline in fund-of-funds capital, Singerman and Linden believe their networks and strategy will attract limited partners.
– GPx aims to help emerging VCs exercise pro-rata rights in later-stage rounds, addressing a common challenge for small funds.
Venture capital veterans Brian Singerman and Lee Linden are raising $500 million for GPx, an innovative new fund blending direct investments with a strategic fund-of-funds approach. The former Founders Fund general partner and Quiet Capital co-founder aim to back emerging managers while securing stakes in their most promising portfolio companies at later stages.
GPx plans to allocate roughly 20% of its capital to early-stage venture funds focused on pre-seed and seed investments. The remaining 80% will target co-investment opportunities in breakout startups at Series B and beyond. This hybrid model differs sharply from traditional VC firms, which typically deploy capital directly rather than through intermediary funds.
The strategy capitalizes on two growing trends in venture capital: the rise of specialized emerging managers and the challenges small funds face maintaining ownership in high-growth companies. Early-stage investors often lack sufficient capital to exercise pro-rata rights in subsequent funding rounds, forcing them to pass on lucrative follow-on opportunities or hastily assemble special purpose vehicles. GPx positions itself as a solution, providing both funding and strategic support to help smaller firms scale with their best-performing startups.
While fund-of-funds vehicles saw declining interest last year, GPx’s founders bring considerable industry clout. Singerman’s tenure at Founders Fund and Linden’s Quiet Capital track record could attract limited partners seeking access to high-potential managers. Notably, Peter Thiel, Singerman’s former partner, is reportedly among the fund’s early backers, adding further credibility.
The move reflects a broader shift as top investors leave mega-funds to launch nimble, sector-focused vehicles. By bridging the gap between emerging managers and growth-stage capital, GPx aims to create a pipeline where early bets seamlessly transition into larger investments. If successful, the model could redefine how venture ecosystems support breakout companies across funding stages.
Details about GPx’s final close and specific investment criteria remain undisclosed, with Singerman and Linden declining to comment. Industry observers will be watching closely to see whether this unconventional approach gains traction in an increasingly competitive market.
(Source: TechCrunch)
