Fifty Years Raises $90M from Unicorn Founders - Deep Tech Investment

Fifty Years Closes $90 Million Fund for Deep Tech Investments

Fifty Years, a San Francisco-based venture capital firm established six years ago, has successfully finalized its third fund, securing $90 million in capital commitments. The firm focuses on investments in deep tech companies, many of which demonstrate a commitment to environmental impact.

Strategic Founder Network

Co-founder Seth Bannon revealed the firm’s strategy of attracting founders from 20 prominent “unicorn” companies. This approach aimed to foster a network of advisors and stakeholders with a vested interest in the success of Fifty Years’ portfolio companies.

Ultimately, Fifty Years secured the support of 44 founders from “unicorn” status companies. These individuals hail from organizations like Spotify, Github, Skype, Supercell, Minecraft, Dropbox, Unity, Klarna, Zendesk, Kahoot, and Upstart.

Portfolio Successes

Several companies initially backed by Fifty Years have experienced significant growth. These include:

• Solugen: A synthetic biology company currently valued at $1.8 billion.
• Astranis: A geostationary communications satellite operator, now valued at $1.4 billion.
• Opentrons: A manufacturer of affordable lab robots, with a current valuation of $1.8 billion.

These successes underscore Fifty Years’s strong track record for such a young firm.

Diverse Investment Areas

Fifty Years’ investment portfolio extends beyond space technology and sustainable chemicals. It includes companies like:

• Upside Foods: A food technology company, formerly known as Memphis Meats, with an estimated valuation in the billion-dollar range.
• Varda: A space manufacturing company that has secured $51 million in funding, focused on producing goods in space for delivery to Earth.

Bannon explained that certain manufacturing processes, such as those for protein therapeutics, telecommunications fibers, and semiconductors, benefit from the absence of gravity.

Connecting Scientists with Venture Capital

Fifty Years distinguishes itself through its ability to connect with scientists and facilitate the creation of new companies. This is achieved through unique initiatives designed to benefit both scientists and the firm.

One such initiative is a Ph.D.-to-VC program. This 10-week program educates Ph.D. holders and doctoral program dropouts about venture capital, while simultaneously allowing Fifty Years to identify potential talent.

Knowledge Sharing Platforms

The firm also hosts the “Translation Podcast,” featuring lead authors of groundbreaking biology papers discussing their research and future goals.

Furthermore, Fifty Years operates the “Fifty 50” platform, bringing together 50 leading biologists from North American labs. This platform provides entrepreneurial content, networking opportunities, and a dedicated Slack channel for collaboration.

Bannon emphasized that this initiative addresses the isolation often experienced by Ph.D. students in academia.

Leveraging the Y Combinator Network

A connection established through Y Combinator, where both Bannon and Madej participated, has proven valuable. This connection led to an investment in Cover, a rapidly growing company specializing in modular homes and ADUs.

Future Investment Focus

Looking ahead, Bannon indicated that synthetic biology will remain a key area of interest, driven by the success of Solugen. He noted that supporting a breakout company generates valuable learnings and expands the firm’s network within the field.

Additionally, Madej is currently exploring opportunities within Web3, believing that the necessary infrastructure is now in place for applications with significant positive social impact.

A Collaborative Ecosystem

Fifty Years anticipates finding collaborative investors, noting a shift in the investment landscape. Bannon stated that it is “no longer fringe” to prioritize both financial returns and positive impact.

The firm views other venture capital firms as collaborators rather than competitors, specifically mentioning Lowercarbon Capital, Boom Capital, Cantos, and Founders Fund.

Bannon believes that there is a need for a substantial increase in the number of deep tech investment firms, suggesting “We probably need 10 times more of them.”

Currently, Fifty Years manages a total of $200 million in assets.

Pictured above are Fifty Years co-founders Ela Madej and Seth Bannon.