Eniac Ventures Launches $125 Million Fifth Fund

Eniac Ventures, a seed-stage investment firm concentrating on startups located in New York, has announced the closing of its fifth fund, totaling $125 million.

A Decade of Collaboration

The firm’s four general partners – Hadley Harris, Nihal Mehta, Vic Singh, and Tim Young – have collaborated on investments for over ten years. Their acquaintance extends even further back, originating from their time together at the University of Pennsylvania.

Singh characterized Eniac as a pioneering firm in seed investing, while Mehta highlighted consistency as a key strength.

Fund Growth and Investment Strategy

Over the past decade, Eniac’s fund sizes have experienced substantial growth. Beginning with a $1.6 million initial fund in 2010, it progressed to a $100 million fourth fund in 2017.

Mehta stated that the team approached the latest fund with a target of $125 million, establishing it as both an objective and a “hard cap.”

Larger fund sizes enable Eniac to participate in a greater number of investments and to take leading roles in funding rounds, even as the scope of seed-stage deals expands.

The firm indicates its investment range is between $350,000 and $3 million per round.

Maintaining a Seed Focus

Harris emphasized that Eniac will continue to prioritize seed investments over Series A funding. The firm aims to maintain a highly collaborative approach, ensuring they typically do not exceed a 50% stake in any given round.

Each of Eniac’s general partners typically makes only two to three investments annually, a rate Harris described as “quite a bit less than your average seed fund.”

The firm prioritizes being the lead or co-lead investor in the companies it backs, and possessing the capacity to actively partner with them during their initial phases.

Harris believes this level of engagement necessitates a concentrated investment strategy.

Portfolio Performance and Investment Areas

Eniac’s portfolio currently comprises over 120 companies, with more than 50 successful exits.

Recent portfolio successes include Attentive, a mobile messaging company that secured a $230 million Series D funding round last fall, Anchor, a podcasting startup acquired by Spotify, and Boxed, an online retailer that has formed a partnership with Aeon, a major Asian brick-and-mortar retailer.

Initially focused on mobile technology, Eniac now invests across a broader spectrum, including software-as-a-service, developer platforms, consumer applications, and deep tech.

Harris explained that the firm avoids concentrating on specific industries or trends, preferring a balance between thesis-driven and opportunistic investments.

Geographic Focus and Remote Work

Eniac maintains its headquarters in New York, alongside an office in San Francisco.

While New York-based startups remain a priority, the firm acknowledges the potential for exceptional founders to emerge from any location and is increasingly open to supporting distributed teams.

Singh noted that despite the growing attention on other startup hubs, many founders they partner with in New York are choosing to remain in the city.

He added that while remote team members may be hired, the standards for remote employees are high.

For startups aiming for a fully distributed model, Singh emphasized the importance of building that structure intentionally from the outset.

Diversity and Team Expansion

The team’s long-standing composition, consisting of four male general partners, raises potential concerns regarding diversity.

However, Eniac has recently promoted Anna Nitschke, Vice President of Finance and Operations, and Kristin McDonald, an Investor, both of whom Singh stated actively participate in investment decisions and have an equal voice in the firm’s operations.

The firm intends to add six new team members this year.

Upcoming Interview

An interview with the firm’s partners will be conducted on Superpeer, a recent Eniac investment, on February 10th at 2:30 p.m. Eastern time.