While XYZ Venture Capital may be relatively unknown, this San Francisco-based seed-stage firm has gained significant recognition among many former employees of Palantir. XYZ reports having already invested in 22 startups established by founders with backgrounds at the data analysis company, with Anduril, the defense technology startup founded by Palmer Luckey, being a particularly prominent example. In fact, XYZ’s founder, Ross Fubini, states that his firm provided Anduril with its initial funding.

This connection stems from a crucial introduction. Fubini, a graduate of Carnegie Mellon University, previously co-founded an enterprise-level company, CubeTree, which was later sold to SuccessFactors and subsequently acquired by SAP in 2011.

Following this, like many entrepreneurs, he began making investments in other companies.

Initially, Fubini collaborated with Mitch Kapor, a successful software entrepreneur and investor, who mentored him within his venture firm. During his year with the organization, Fubini participated in seed funding rounds for companies such as Omada Health, a digital care provider, Optimizely, an optimization platform (recently acquired), and LendUp, a payday loan company that underwent restructuring in 2018.

From Kapor Capital, he transitioned to Canaan Partners as a venture partner and, three years later, to Village Global, an early-stage venture firm launched in 2017 with support from well-known founders including Bill Gates and Reid Hoffman. (Fubini was instrumental in co-founding this firm alongside several others.)

Concurrently, Fubini started building his own investment portfolio under the name XYZ Ventures, ultimately establishing a $70 million fund.

He is now focused on expanding the firm’s operations.

This year, XYZ successfully closed its second fund, securing $80 million in commitments primarily from institutional investors, and has been actively deploying capital. Fubini explains that the firm has already invested in 30 different startups, with investments ranging from $500,000 to $4 million for equity stakes of 12% to 20%.

He also welcomed Chauncey Kerr Hamilton as a partner, who previously spent over five years as a partner operations manager at First Round and was seeking a new opportunity when a mutual acquaintance connected her with Fubini. “I consistently heard positive feedback about Ross from founders and fellow investors, leading to numerous meetings and conversations,” she recounts.

Hamilton notes that she gradually recognized a strong alignment in their perspectives. She has also encouraged Fubini to increase XYZ’s public profile to benefit its portfolio companies. As a former projects editor at Wired, she playfully refers to the “mystique” surrounding XYZ Ventures but suggests that greater visibility could facilitate more open discussions from founders regarding their lead investor, beyond simply referencing Fubini’s LinkedIn profile.

This strategy is particularly relevant as XYZ broadens its focus beyond Palantir, a company historically known for its discretion, where Fubini’s initial relationship began with introducing Palantir’s first business hire to its first engineer. That initial hire, a close friend, is now Palantir’s chief operating officer, Shyam Sankar; the second, Akash (“Aki”) Jain, a former colleague of Fubini, currently serves as Palantir’s president.

“Facilitating that connection has been the most impactful thing I’ve done,” Fubini states, leading to an ongoing advisory role at the company where he contributed to talent development and problem-solving (and received advisor shares in return).

Indeed, he has become a primary contact for individuals leaving the company. In addition to Anduril — founded by former Palantir executives Matt Grimm, Trae Stephens, and Brian Schimpf — XYZ has recently invested in Mosaic, a San Diego-based financial planning platform. Its co-founder, Bijan Moallemi, is a former finance executive at Palantir.

XYZ also provided the initial funding for Saltbox, an Atlanta-based startup developing co-working spaces with warehouse facilities. Saltbox’s founder, Tyler Scriven, previously held a chief of staff position at Palantir for over seven years.

Fubini and Hamilton emphasize that while a significant portion of XYZ’s investments have been directed towards individuals from the “Palantir network,” the company also pursues other areas of interest, primarily within the enterprise sector.

XYZ is particularly interested in fintech, having invested in Bond Technologies, a company assisting brands and banks with integrating their services. It also has investments in insurtech, such as the brokerage Newfront Insurance, and in security, including Verkada, a company that has faced challenges but appears to have overcome them.

XYZ recently made an investment in a direct-to-consumer company, details of which Fubini and Hamilton are not yet disclosing.

Their primary focus, they explain, is on “trends that are experiencing rapid growth,” according to Hamilton. She cites video as an example, and adds that they are also interested in fintech infrastructure. “For every fintech company creating a new bank, we believe three companies will be needed to replace the outdated software” that supports them, Fubini explains.

Regarding securing deals with founders outside of their existing network, Fubini believes it’s a straightforward process. He finds that being “remarkably candid” is beneficial, but also emphasizes that “consistent effort and dedication lead to increased opportunities.”