Former Founders Fund GP Brian Singerman and Lee Linden Launching New Fund GPx
Former Founders Fund GP Brian Singerman and co-founder and managing partner of Quiet Capital, Lee Linden, are in the process of raising over $500 million for their new venture capital fund called GPx, according to sources familiar with their strategy. A significant portion of GPx’s funding is expected to come from Founders Fund co-founder Peter Thiel.
The unique strategy behind GPx involves a two-pronged approach. Around 20% of the fund will be invested in funds managed by emerging VCs focusing on pre-seed and seed-stage startups. The remaining capital will be used to partner with emerging managers on leading later-stage investments, typically at Series B, in their standout portfolio companies.
Unlike traditional venture capital firms that invest directly in startups, GPx is taking a different route by incorporating elements of a fund-of-funds model. This less common investment strategy involves investing a portion of the capital into a portfolio of other funds rather than directly into startups. While fund-of-funds offer LPs access to unique investment opportunities, they also come with the drawback of additional fees.
Despite a recent decline in capital raised by fund-of-funds firms, Singerman and Linden are confident that their personal reputations, expansive networks, and a hybrid investment strategy will attract LPs to invest in GPx.
As the venture capital landscape shifts towards larger funds, some top investors are branching out to launch their own specialized investment firms. GPx aims to capitalize on this trend by supporting emerging VC investors in identifying and backing promising early-stage companies, while also co-leading later-stage investments in their best-performing portfolio companies.
One key advantage of GPx’s strategy is its ability to empower emerging funds to maintain their ownership stakes in successful companies by providing capital for later-stage rounds. This eliminates the need for small VCs to scramble for additional funding to exercise their pro-rata rights in high-demand deals.
With GPx’s backing, emerging funds will have the opportunity to not only participate in later-stage rounds but also take on a leading role in these investments.
While initial reports of Singerman and Linden’s new venture, GPx, did not disclose specific details about the fund’s target size and strategy, it is clear that the duo is set on revolutionizing the traditional VC model.
Despite requests for comment, Singerman and Linden have yet to respond to inquiries about GPx.
Editor’s note: This article has been updated to reflect Peter Thiel’s involvement with GPx.
