BoxGroup builds its primary externally supported fund to invest in seed-stage startups
Prerna Mahtani,
4 years ago
2 min read
BoxGroup, the seed-stage financing firm headed by David Tisch, has announced that it has raised its very initial fund from limited partners.
To date, BoxGroup has been privately backed, indicating that the money came in from none other than the three associates at the firm, David Tisch, Adam Rothenberg and Nimi Katragadda.
BoxGroup has originally written smaller checks, generally between $250K and $500K, for early-stage startups.
More Information About The Funding
The new fund is two separate funds: a general seed fund and an Opportunity fund, individually managing $82.5 million in the form of capital.
Limited partners in BoxGroup Four involve Willoughby Capital, TrueBridge and founders from BoxGroup’s portfolio, TJ Parker, Jeff Raider and Nat Turner.
That stated, not much would change at BoxGroup.
The firm will yet be writing $250K to $500K checks for pre-seed, seed and early Series A companies as a member, not a lead.
Tisch had said that the most significant part of their message with this is that they are not changing.
In a business where everyone is constantly changing, they believe it is vital to stay true to what they do, which is to write collaborative seed checks.
BoxGroup does not take board seats or “ownership” over the organisations in which it invests.
Instead, it participates in seed rounds over a wide variety of verticals, which includes health, biotech and food amongst the typical suspects like SaaS products, marketplaces and e-commerce.
The portfolio thus notably includes titles like Warby Parker, Airtable, Flexport, Roman and RigUp, which lately raised $300 million led by Andreessen Horowitz.
The firm also holds a shine to New York-based companies, involving Bowery Farms, ClassPass, Glossier, Chief, Mirror and David Chang’s Ando.
BoxGroup’s Successful Exits
BoxGroup has also had three separate billion-dollar exits:
- Flatiron Health, which it sold to Roche for $2.1 billion
- Harry’s, which it sold for $1.37 billion to Edgewell Personal Care
- PillPack, which it sold to Amazon for only a shy of a billion.
Tisch had further said that this is the best development for their fund.
It needs about 10 years to get gains and results in this business, and they are about 10 years old.
Tisch added that this external money would enable BoxGroup to support better its portfolio of early-stage businesses with follow-on financings.
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