Female Representation in Venture Capital

Data from 2019 indicated that a significant portion – 65% – of venture capital firms lacked even a single female partner or General Partner (GP), as reported by All Raise.

Consequently, announcements regarding new female-led funds naturally attract considerable attention within the industry.

Avid Ventures Launches $68 Million Fund

Avid Ventures, a New York-based venture capital firm, recently unveiled its inaugural $68 million venture fund. The firm was established in 2020 by Addie Lerner, formerly an investor at General Catalyst, General Atlantic, and Goldman Sachs.

Lerner’s vision for Avid centers on a proactive, collaborative approach to supporting founders of early-stage companies across the United States, Europe, and Israel.

“We consider investment in a company founded by an entrepreneur to be a privilege that must be earned through diligent effort,” she stated.

Founding and Fundraising

Tali Vogelstein, previously with Bessemer Venture Partners, joined Avid as a founding investor shortly after its inception.

Together, they successfully secured the fund’s capital within a 10-month timeframe, despite the challenges presented by the 2020 pandemic.

Impressive Limited Partner Base

The fund boasts a strong roster of Limited Partners (LPs) supporting its initial venture. Schusterman Family Investments and the George Kaiser Family Foundation serve as anchor LPs.

Institutional investors contributing to the fund include Foundry Group, General Catalyst, 14W, Slow Ventures, and LocalGlobe/Latitude, via its Basecamp initiative focused on backing emerging managers.

Avid also benefits from the backing of 50 founders, entrepreneurs, and investors acting as LPs, with women comprising 40% of this group.

This includes Brynn Putnam, founder of Mirror, Jonathan Klein, co-founder of Getty Images, and Theresia Gouw, founding partner of Acrew Capital, among others.

Investment Strategy and Portfolio

Avid Ventures focuses its investments on companies at the Series A and B stages.

To date, the firm has invested in Alloy, Nova Credit, Rapyd, Staircase, Nava, and The Wing.

Notably, three of these portfolio companies are led by female founders, a development Lerner described as occurring “naturally.”

“We believe that fostering diversity should be an organic process, rather than relying on quotas or mandated targets,” she explained.

Partnerships and Investment Approach

In these deals, Avid has collaborated with prominent firms like Kleiner Perkins, Canapi Ventures, Zigg Capital, and Thrive Capital.

The firm generally avoids leading initial investments, with first checks typically ranging from $500,000 to $1 million.

A significant portion of the fund’s capital is reserved for follow-on investments.

“Our strategy is to position ourselves to earn the opportunity to make a larger investment in subsequent funding rounds,” Lerner shared with TechCrunch.

For instance, in the case of Rapyd, Avid organized a Special Purpose Vehicle (SPV) to participate in the unicorn’s recent Series D round.

Lerner had previously invested in Rapyd’s Series B round while at General Catalyst and currently serves as a board observer.

Lerner’s Experience and Sector Focus

Before establishing Avid, Lerner oversaw the deployment of over $450 million across 18 investments in software, fintech (including Rapyd & Monzo), and consumer internet companies throughout North America, Europe, and Israel.

Avid is particularly interested in backing early-stage fintech, consumer internet, and software companies.

The firm plans to invest in approximately 20 startups over a three-to-four year period.

“We prioritize a deliberate pace to ensure we can provide the level of hands-on support we aim for,” Lerner said.

“Our objective is not to invest in a large number of companies, but rather to generate exceptional returns for our LPs.”

Value Proposition and Support Services

Avid Ventures positions itself as an extension of its portfolio companies’ teams, functioning as their “Outsourced Strategic CFO.”

Lerner and Vogelstein offer strategic growth modeling, unit economics analysis, talent acquisition, customer introductions, and business development assistance.

“We are committed to building strong relationships from the outset and demonstrating our value before making an investment,” Lerner emphasized.

Avid leverages its team’s data-driven background to employ a “metrics-driven approach,” enabling startups to “gain a comprehensive understanding” of their unit economics.

The firm also actively collaborates with founders to facilitate company growth.

Industry Recognition

Ed Zimmerman, chair of Lowenstein Sandler LLP’s tech group in New York and an adjunct professor of venture capital at Columbia Business School, is an investor in Avid.

He shared with TechCrunch that, due to his involvement in the venture community, he frequently advises companies and funds and encounters former students in various deals.

Feedback from his network consistently highlights Lerner as “exceptionally thoughtful in her deal-making,” with one entrepreneur describing her as “one of the most intelligent individuals she has encountered in over a decade in the venture space.”

“I have personally observed this in deals, and I have seen founders choose to work with Addie over well-established funds,” Zimmerman added, noting their appreciation for both her intellect and integrity.

“…Addie consistently identifies and secures participation in promising deals because she leaves a lasting impression on those who collaborate with her, and the data consistently supports this observation.”