Brian Singerman Breaks Records with Over $500M Fund Launch Featuring Innovative Twist in Venture Capital Model

Brian Singerman, former General Partner at Founders Fund, and Lee Linden, co-founder and Managing Partner of Quiet Capital, are pursuing over $500 million for a new fund titled GPx. Sources familiar with their strategy have disclosed this information. It is anticipated that a portion of the capital for GPx will originate from Peter Thiel, Founders Fund co-founder.

GPx employs a dual-focused investment approach. Approximately 20% of the fund’s capital will be allocated towards investments in funds managed by emerging venture capital firms that specialize in pre-seed and seed-stage startups. The remaining capital will be directed towards collaborating with these up-and-coming managers on leading later-stage investments, primarily at Series B, within their breakout companies.

This strategy deviates from the typical venture capital firm model, where capital is invested directly into startups. GPx incorporates elements of a fund-of-funds model, a less common investment approach in which a firm invests a portion of its capital into a portfolio of other funds, rather than directly in underlying assets such as startups. While a fund-of-funds offers limited partners easy access to under-the-radar or hard-to-access firms, it carries the disadvantage of dual layers of fees – those charged by the fund-of-funds and those by the underlying managers.

Despite the decline in capital raised by fund-of-funds firms last year, as reported by PitchBook, Singerman and Linden are optimistic that their reputations, unique networks, and a strategy that partially employs a fund-of-funds model will entice limited partners to invest in GPx.

Singerman and Linden’s approach may prove insightful. As venture capital becomes increasingly concentrated within the largest funds, some of these firms’ top investors are growing disenchanted with being part of a large entity. They are leaving their behemoth firms to establish their own investing entities where they can operate more nimbly and specialized.

GPx is wagering that the next generation of venture capital investors will identify and support numerous promising early-stage companies, enabling Singerman and Linden’s firm to co-lead later-stage investments in the emerging managers’ most successful portfolio companies.