Venture investors Dan Portillo and Phin Barnes see TheGP's $240 million fund as the missing pillar in what they call a different model for supporting entrepreneurs.
The General Partnership founders Phin Barnes and Dan Portillo believe their approach to services provides a more direct benefit to founders than the typical VC firm's.Venture capital firms typically start out with money. As they get bigger and compete more for choosy entrepreneurs, they add more bells and whistles — marketing help, recruiting services, legal support and the like — over time.
But it’s not a shift in the core model that Portillo and co. have operated since 2018 under the firm’s original brand, Sweat Equity Ventures, with a team of 25-plus professionals today in people, product and go-to market and a portfolio of more than 50 companies including Coda, Eight Sleep, Grafana Labs and Nuro. Instead, the fund is a “fourth pillar” option for founders, the firm says.
While at Greylock, Portillo and his staff were an ace up the sleeve for the firm’s investors, helping hire the first 10 staffers at photo-sharing app Instagram, he says, to help secure that deal – one of 17 that Greylock secured through its talent team. But as Andreessen Horowitz led the industry into a period of staffing up in services functions such as recruiting, legal and sales support, Portillo felt those functions were ripe for unbundling.
“One of the things that founders say is that there’s no VC that can make your company, there are only VCs that can break your company,” Serna says. “I think that TheGP is definitely challenging that adage, because they are actually side by side with each of their portfolio companies, doing the actual dirty work that it takes to build the business.”
Such an option makes sense to Phaedra Ellis-Lamkins, cofounder and CEO of Promise, a startup that offers interest-free financing for government debt. Initially skeptical of TheGP’s equity-swap model, Ellis-Lamkins raised a $25 million Series B led by the firmafter running one hiring project-for-equity with the firm. She’s now used the TheGP to hire a head of engineering, head of product, chief resource officer and several engineers so far.
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