Steve Jurvetson & Maryanna Saenko on New Fund, SPACs & Tech Exodus

Future Ventures, established by Steve Jurvetson, a Silicon Valley venture capitalist, and Maryanna Saenko, a former colleague at DFJ and investor with Airbus Ventures and Khosla Ventures, has successfully completed fundraising for its second fund, securing $200 million in capital commitments, according to the founders.

During a recent discussion, Jurvetson described the fund as experiencing significant oversubscription within a relatively brief timeframe. He noted that approximately one-third of the fund’s investors are venture capitalists and other investment firms, while another substantial portion consists of technology leaders – including current and former CEOs of prominent organizations within their field of focus. The remaining third of the capital originates from institutional investors, including one university endowment, though the specific institution was not disclosed.

Similar to Future’s initial $200 million fund, which was finalized two years prior, this latest investment vehicle operates on a 15-year timeline, allowing for more flexible, long-term investment strategies. Jurvetson also confirmed the continuation of standard financial terms, including a 2.5% management fee and a 25% carried interest, representing Future’s share of investment profits.

Jurvetson explained to investors that, “These ventures require a long-term outlook, typically taking more than five to seven years to reach full potential.” He added, “Companies may become publicly traded within that period, but, as demonstrated by successes like Tesla and SpaceX, prematurely exiting a promising investment during a period of rapid expansion could be detrimental.”

The new fund’s potential size could have been even greater. Jurvetson has maintained a business relationship with Elon Musk for over two decades, with Future Ventures participating in the initial funding round for The Boring Company, Musk’s tunnel construction venture, in addition to his early support of SpaceX and Tesla.

The firm also provided the initial investment for Neuralink, Musk’s neurotechnology company, which recently showcased its advancements in developing implantable brain-computer interfaces aimed at addressing conditions such as Alzheimer’s and dementia, among others.

Future Ventures also holds an investment in SpaceX, which is now an 18-year-old company. In fact, the firm’s first investment was in SpaceX, and last year, it quickly raised a $100 million special purpose vehicle (SPV) dedicated to SpaceX within just five days, with participation offered to existing fund investors, as stated by Saenko.

Jurvetson indicated that these specialized funds will not be a regular occurrence. “We informed our investors that we might occasionally pursue a significant, single investment in a company we deeply believe in, even at a later stage. While we didn’t anticipate this happening immediately, the opportunity to reinvest in SpaceX’s recent funding round proved too compelling to pass up.”

The primary strategy remains focused on making smaller, initial investments – averaging $3.8 million – in startups. Future Ventures plans to invest in approximately 20 companies from the new fund, mirroring its previous approach, and intends to adopt a less assertive stance regarding board representation compared to some other venture firms.

Saenko suggested this approach is partly due to practical limitations, acknowledging that she and Jurvetson have finite capacity. She also emphasized that they consistently maintain comprehensive access to company information, even without holding a director position, which is often a key reason why venture capitalists seek board seats.

Beyond its investments linked to Musk, Future Ventures is building a diverse portfolio encompassing areas such as cellular manufacturing, longevity research, and edge AI, among others.

The firm recently led a follow-on investment in Sensei Biotherapeutics, a Boston-based company established 21 years ago that is developing personalized cancer treatments and is planning an initial public offering this year, utilizing bacteriophage to stimulate an adaptive immune response.

Future Ventures, also an investor in Memphis Meats, a lab-grown meat producer, is currently prioritizing regenerative agriculture and permaculture – land management practices that emulate thriving natural ecosystems.

Saenko stated, “It’s crucial for us to evaluate our current food production methods and determine their sustainability in light of the growing global population and its future needs.”

The pair expressed a lack of interest in current trends within the venture capital landscape, including increased investment in space-related ventures and the relocation of companies from California.

Jurvetson, who previously led DFJ’s investments in SpaceX and Planet, the satellite company, believes the space investment sector is becoming overly saturated, although he anticipates becoming a space tourist in the future.

Regarding relocation, Saenko confirmed she has no plans to move, and neither does Jurvetson, who previously lived in Texas for 12 years and has no desire to return.

“Unfortunately,” Jurvetson remarked, “many of my acquaintances have relocated to Texas or Florida.” He also admitted to voicing his disapproval, questioning why individuals who have accumulated sufficient wealth to live anywhere would choose to move solely to reduce capital gains taxes, suggesting charitable donations as an alternative.

He argued for a “broader perspective beyond simply wealth transfer and preservation across generations,” deeming such a focus “short-sighted.”

The pair also expressed skepticism towards the growing popularity of special purpose acquisition companies (SPACs) as a route to public markets, particularly within the automotive industry. Lucid Motors, an electric vehicle startup, is reportedly considering a public listing through a merger with a SPAC sponsored by Wall Street veteran Michael Klein.

Faraday Future, another electric vehicle startup, is also reportedly exploring a public offering via a SPAC merger.

Jurvetson, who experienced a significant departure from DFJ in 2017 (which continued as DFJ Growth), was critical of the electric vehicle sector, stating, “It would be encouraging to see a genuinely promising company among them, but it currently resembles a collection of struggling ventures.”

He added that “these companies are often unable to secure funding from traditional sources” at their current stage of development.

Saenko offered a more diplomatic, yet still cautious, assessment of these deals.

“We’re not suggesting that all SPAC companies are inherently flawed,” she clarified. “However, we advise caution, as these companies are typically early-stage and the SPAC serves primarily as a fundraising mechanism.”

She explained that “public market investors expect a certain level of maturity, progress, and reliable forecasting from publicly traded companies, which is often lacking in companies that have gone public through SPACs. This discrepancy could potentially have negative repercussions for the entire technology industry.”