137 Ventures Announces New $350M Fund

SAN FRANCISCO, Nov. 2, 2021 /PRNewswire/ -- 137 Ventures, a growth-stage venture capital firm, announced the closing of 137 Ventures Fund V, a $350 million fund. This is the largest fund in the firm's 10-year history and brings assets under management to approximately $2 billion. Fund V was oversubscribed, with the firm's existing limited partners contributing the majority of the capital. The firm also welcomed several new limited partners, including one of the world's largest endowments as well as leading universities, foundations, and family offices. The firm's prior flagship fund (Fund IV) was closed at $250 million.

With Fund V, 137 plans to use the same investment strategy as it employed for its previous four funds. Namely, most of the fund's capital will be used to provide custom liquidity solutions to founders, executives, early employees, and other large shareholders of private, high-growth technology companies. Fund V will also make small investments in primary rounds. Over the last ten years, 137 Ventures has invested in more than 75 companies, of which 13 have gone public thus far (including seven companies that have gone public in the last 14 months).

Said 137 Ventures Managing Partner Justin Fishner-Wolfson, "Our team is happy to have helped founders by providing them hundreds of millions of dollars in liquidity over the years. By doing so, we have been able to invest directly with founders and other large shareholders in some of the industry's most sought-after companies. Our limited partners support our approach to venture investing, for which we are very grateful. We have spent the last ten years proving the effectiveness of our model and developing a track record that we are proud of. The decades ahead will be focused on scaling the team and continually innovating liquidity solutions for visionary founders and company leaders."

137's largest active portfolio companies by fair market value at present are SpaceX, Gusto, Flexport, Workrise, and Curology. The five largest investments by dollars invested since the launch of 137 Ventures Fund IV in 2019 are Workrise, Wonolo, Thirty Madison, Anduril, and Lattice. 

"Founders and VCs have a shared goal of delivering outsized venture returns over time. Obtaining liquidity through 137 Ventures aligns incentives and allows founders and executives to more comfortably play the long game,'' said David Sacks, co-founder and general partner of Craft Ventures. "137 has built a reputation as a trusted advisor to founders and I look forward to seeing how they expand their services."

Today's 137 Investment Team – Promotions & Additions

The investment team is comprised of a managing partner, Justin Fishner-Wolfson, and three investment partners: S. Alexander Jacobson, Andy Laszlo, and Nick Procaccini. These four investment partners have worked together for many years and were previously successful entrepreneurs, operators, and investors from other leading venture firms. Rounding out the investment team are James Pardee, who was promoted from senior associate to principal, and Christian Garrett, who was promoted from head of platform to principal, both in June 2021. The firm also welcomed to the team Alex Lurie as director of legal & business affairs in January 2021 and Brian Jue as investment analyst in May 2021. (137 is currently hiring investment analysts and associates as well as an IR associate. Inquire at [email protected].)

137 Ventures' Origin Story

137 Ventures Co-founders Justin Fishner-Wolfson and S. Alexander Jacobson met while working at Founders Fund. In 2010, Fishner-Wolfson spotted a gap in the market when several of his friends who were working at Facebook at the time sought his advice to obtain liquidity by using their private Facebook shares as collateral. Facebook was founded in 2004 and would not go public until 2012. These friends had valuable Facebook shares but did not have the cash to fund life events such as purchasing a home or repaying student loans. When Fishner-Wolfson realized such liquidity solutions did not exist, he and Jacobson left Founders Fund to create 137 Ventures. The firm was founded on the thesis that venture-backed companies would stay private longer and the need for liquidity would continue to grow over time. Since then, this thesis has been borne out. According to Pitchbook, the average time from a company's first venture investment to an exit has gone up 20% during the ten-year period ending September 30, 2020.

137 Ventures raised its first fund in 2011. Since then, 137 has closed four additional flagship funds and dozens of co-investment vehicles. The firm generally targets position sizes ranging from low single-digit millions up to tens of millions of dollars for core positions. While sector-agnostic, the firm focuses on growth-stage companies with at least tens of millions of dollars in revenues and business models that benefit from competitive advantages that accumulate over time, such as network effects, economics of scale, and information asymmetries.

Founders Referring Founders

More than 60% of the holdings in 137 Ventures' third and fourth flagship funds were referred to the firm by the founders and executives who had previously done business with 137. Founders cite tax efficiencies, upside retention, preservation of voting rights, and the lack of adverse impact on the company's 409A valuation as some of the benefits of 137's liquidity solutions.

VCs Referring Founders

One of 137's biggest sources of deal flow are traditional venture capital firms. Traditional VCs realize companies staying private longer could impose significant financial stress on their founders and executives. VCs view liquidity solutions from 137 Ventures as helping founders and executives meet their short-term financial needs in order to focus on building long-term, durable businesses.

About 137 Ventures

137 Ventures is a growth-stage venture capital firm with offices in San Francisco, CA and Las Vegas, NV. Unlike traditional VCs, it largely invests in fast-growing technology companies by providing customized liquidity solutions to their founders and other sizable shareholders. 137 Ventures has a flexible investment strategy and can also make small investments in primary venture rounds. Since its inception in 2011, the firm has raised five flagship funds and multiple co-investment vehicles, bringing the total assets under management to approximately $2 billion. More about 137 Ventures, including a list of its portfolio companies can be found on their website. 

Media Contact: 
Ching Wu
[email protected]
650-388-6705 (cell)                                                                 

Disclaimer: The portfolio companies identified and described herein do not represent all of the portfolio companies purchased, sold or recommended for portfolios advised by 137 Ventures. The reader should not assume that an investment in the portfolio companies identified were or will be profitable. A complete list of portfolio companies is available upon request. This material presented is for informational purposes only and should not be construed as investment advice. It is not a recommendation of, or an offer to sell or solicitation of an offer to buy, any particular security, strategy or investment product. Any analysis or discussion of investments, sectors or the market generally are based on current information, including from public sources, that we consider reliable, but we do not represent that any research or the information provided is accurate or complete, and it should not be relied on as such. Our views and opinions expressed in this report are current at the time of publication and are subject to change. Past performance is not indicative of future results. Loans will be arranged or made pursuant to a California Financing Law License. 137 Ventures Management, LLC is an SEC registered investment advisor. SEC registration does not indicate a certain level of skill or training.

SOURCE 137 Ventures