Obvious Ventures, the investment firm co-founded by Evan Williams of Twitter fame, has successfully launched its fifth fund, amassing an intriguing $360,360,360. This unique number continues a tradition set by previous funds, which include $123,456,789 for the first fund, $191,919,191 for the second, $271,828,182 for the third, and $355,111,553 for the fourth, each reflecting a playful mathematical theme.
This new fund underscores Obvious Ventures’ commitment to addressing critical issues in global health, focusing on three key areas: planetary health, human health, and economic health. Co-founder Joaquin noted that the fund’s size represents a comprehensive approach, emphasizing the importance of learning from past investment successes and challenges.
Joaquin elaborated on the firm’s strategy of maintaining manageable fund sizes, allowing for significant returns from single investments if they mature into successful public companies. For instance, Beyond Meat, one of Obvious’s early investments, boasted a market cap exceeding $14 billion shortly after its 2019 IPO but has seen fluctuations since.
Despite market volatility, Obvious Ventures has delivered substantial cash distributions to its limited partners and celebrates multiple successful public exits. Notable achievements include their financing of Planet Labs, which went public through a SPAC in 2021, now valued at around $8.5 billion, and a Series A investment in Recursion Pharmaceuticals, which also maintains a market cap over $2 billion. Additionally, Obvious is an early backer of Gusto, a payroll and HR platform that is valued over $9 billion and is on an IPO path.
In a competitive venture capital landscape, where only 17% of firms raise more than three funds, achieving this milestone solidifies Obvious Ventures’ position as a significant player in the industry. Joaquin remarked on the accomplishment, highlighting their sustainable investment philosophy geared toward fostering companies that create positive societal impacts.
The firm’s recent investments reflect its strategic focus within its three targeted sectors. In planetary health, Obvious Ventures has invested in Zanskar, a startup leveraging AI and proprietary data to exploit geothermal energy, which announced a $115 million Series C funding round. This energy source is particularly relevant for powering data centers, including those reliant on AI.
In the realm of human health, their investment in Inceptive, an AI platform for molecule development created by transformer’s architecture co-author Jakob Uszkoreit, signifies their commitment to innovation. Meanwhile, the economic health category includes support for Dexterity Robotics, valued at $1.65 billion, which develops robots for challenging tasks currently performed by humans.
Led by Joaquin and co-founder Vishal Vasishth along with a dedicated team, Obvious Ventures plans to make approximately ten investments annually, with funding ranging from $5 million to $12 million for Seed and Series A companies. Through this carefully curated investment strategy, Obvious Ventures aims to drive meaningful change in key health sectors while fueling growth in the startup ecosystem.
