Seven Seven Six Closes $150M Fund 1 - Alexis Ohanian's Venture Firm

Alexis Ohanian Launches Seven Seven Six with $150 Million Fund

Last June, Alexis Ohanian revealed his departure from Initialized Capital, the venture capital firm he established with Garry Tan in 2011. Now, almost a year later, he has announced the launch of his new venture firm, Seven Seven Six, and its successful completion of a $150 million first fundraise.

The Origin of the Name: A Story of Inclusivity

The firm’s name, Seven Seven Six, is derived from the year the first Olympic Games were held. Ohanian draws a parallel to a cook from a local village who unexpectedly won the Stadion race. This story highlights that success isn't always about being the absolute best, but about opportunity and access.

The initial Games excluded many potential athletes – those from outside Greece, individuals lacking the resources to participate, and women, who were barred even from spectating. Ohanian’s intention is to acknowledge these historical exclusions.

A Commitment to Continuous Improvement

“Reflecting on my entrepreneurial and investment journey, I identified with the cook’s story,” Ohanian stated. “While proud of my accomplishments, I recognize the potential for further growth and improvement.”

He emphasized that striving for inclusivity isn’t merely a matter of principle, but a strategic advantage. “Pursuing every entrepreneurial opportunity will yield greater financial success and effectiveness,” he added.

Equity and Inclusion as Core Values

Equity and inclusion are fundamentally integrated into Seven Seven Six’s operational framework. Notably, half of the firm’s limited partners are women, and 15 percent identify as Black or indigenous.

Founding Team

Alongside Ohanian, Katelin Holloway and Lissie Garvin are assuming founding roles at Seven Seven Six. Both previously collaborated with Ohanian at Initialized and Reddit.

The “Growth and Caregiving Commitment”

Seven Seven Six introduces a distinctive 2% “Growth and Caregiving Commitment.” This initiative stems from Ohanian’s personal experience during his time at Y Combinator.

He faced simultaneous personal challenges, including his mother’s illness and an accident involving his then-girlfriend. Balancing these difficulties with the demands of building a business created significant financial strain and stress.

The 2% commitment allocates an additional 2% of each investment to provide financial support to founders for personal needs. This could encompass childcare, travel expenses, or even personal enrichment activities like surfing lessons, all aimed at fostering a healthy work-life balance and optimal founder performance.

Transparency and Accountability

Transparency is another cornerstone of Seven Seven Six’s approach. The firm intends to publicly report on the allocation of funds from the 2% commitment, as well as the diversity and inclusion metrics of its investment portfolio on an annual basis.

Initial Investments

To date, the venture capital firm has completed 17 investments. Details of these investments are as follows:

Focus on Seed Rounds

Seven Seven Six will primarily concentrate on seed-stage investments, aiming to lead those rounds whenever possible. This fundraise occurs within a broader trend of venture capital firms benefiting from the current low interest-rate environment, facilitating capital acquisition for investment purposes.