Max Altschuler's Accidental VC Firm Raises $54M

GTMfund Secures $54 Million for Second Fund

Just four years following its accidental inception, GTMfund, led by founder and general partner Max Altschuler, has successfully closed a $54 million second fund. This achievement surpasses the initial target of $50 million.

The Rise of Operator-Led Funds

GTMfund represents a growing trend of “operator led” funds within the venture capital landscape. These funds distinguish themselves by attracting limited partner investors – individuals possessing direct experience working within, or currently employed by, thriving technology companies, commonly referred to as “operators.”

“These investors are typically actively engaged in their current roles, or have recently concluded a significant tenure at a company that scaled from inception to a revenue base of several hundred million dollars,” Altschuler explained to TechCrunch. The fund’s LPs include professionals from prominent organizations such as AWS, OpenAI, Procore, Rippling, and Snowflake.

Focus on Go-to-Market Expertise

The majority of these limited partners specialize in marketing and sales, a skillset highly valued in Silicon Valley and known as “go to market” expertise – hence the fund’s name, GTMfund.

Beyond financial contributions, LPs actively contribute to the success of portfolio companies by providing mentorship in sales strategies – a critical area for many startups – and assisting with the recruitment of skilled sales personnel. They also play a vital role in identifying and assessing promising early-stage companies for potential investment.

Proven Track Record of Fund I

Launched in 2021, the first GTMfund comprised approximately 250 operators alongside a limited number of institutional investors. It provided funding to companies including AI composer Writer (with a valuation of $1.9 billion as of November), AI data center technology firm Atlan (last raising $105 million at a $750 million valuation), and security compliance company Vanta (last raising $150 million at a $2.45 billion valuation).

Building on this success, Fund II has attracted 300 operator LPs, in addition to investments from six institutions: Bain Capital Ventures, HarbourVest, Inovia Capital, and Franklin Park.

An Accidental Venture Capitalist

Altschuler’s journey into venture capital was somewhat serendipitous. Prior to founding GTMfund, he served as employee number eight at Udemy, where he spearheaded sales during the company’s formative years. He subsequently contributed to the SaaStr startup community and provided advisory services to several startups.

He also launched Sales Hacker, a blog he later sold to Outreach in 2018 (though he has since reacquired it). His early investment activities included providing initial funding to companies like Gong and Carbon Health.

Responding to Investor Demand

Driven by frequent inquiries from his extensive network regarding angel investing opportunities, Altschuler conceived of a collaborative investment model. He proposed to a group of GTM professionals: “What if we collectively raised $1 million from 20 to 50 individuals and invested it in 10 companies, providing substantial support to each?”

The response was overwhelmingly positive, resulting in the successful raising of $22 million for Fund I.

Community and Engagement

Limited partners have the flexibility to engage with portfolio companies to the extent they desire, ranging from passive investment to active involvement. GTMfund fosters a strong community through initiatives such as a dedicated deal flow channel for LP discussions, and regular dinners and an annual retreat.

“This endeavor has become a genuine passion project for me,” Altschuler stated. “I derive as much benefit from it as our LPs do. I thoroughly enjoy collaborating with diverse founders and companies, offering guidance on the specialized area of GTM.”

A Growing Trend in Venture Capital

While GTMfund’s operator-focused structure is not entirely unique, it aligns with a growing trend in the venture capital industry. Operator Collective, founded by Mallun Yen in 2019, launched with $45 million and subsequently raised $92 million in 2022, boasting a strong portfolio. Ashley Mayer’s Coalition, established in 2022 with $12.5 million, represents another recent example.

Investment Strategy for Fund II

For its second fund, GTMfund intends to invest in approximately 40 early-stage companies across the pre-seed, seed, and occasional Series A stages, with individual check sizes ranging from $500,000 to $1.5 million.