Alexis Ohanian, who co-founded Reddit in 2005 and who is more popularly known being Serena William's husband, announced the closing of fourth funding worth $225 million for his early-stage venture capital firm, Initialized Capital.
Ohanian, who co-founded Initialized Capital with Garry Tan, announced the fresh funding on Oct. 2 in a personal blog published on the firm's website. His announcement comes as he steps back from his day-to-day involvement with Reddit about nine months ago.
With the recent closing of its fourth funding, Initialized Capital now has more than $500 million under its management and more than 100 portfolio companies under its belt.
Ohanian recalled how Initialized started as a $7 million fund in 2012 to become a $40 million fund in 2013. By 2016, the firm was already a $125 million fund. And now, he is announcing its growth to becoming a $225 million fund.
The 35-year-old internet entrepreneur and investor said Initialized Capital now owns more than half a billion dollars in assets under management.
Ohanian said that the success of his firm resulted from a unique strategy he and Tan employed during the early years of the business. He said they set up an eight-member team comprised of individuals who are the best in identifying the needs of entrepreneurs who are just building their startups.
The team's skills were supported by software that runs the operations of Initialized Capital in a more practical means. Hence, the first thing that they looked for in a startup that they invest in is its smart used of the algorithm and artificial intelligence.
Initialized Capital is behind Opendoor, a real estate selling platform that uses artificial intelligence to buy properties directly from the home sellers without the involvement of property sales agents.
Initialized Capital also has stakes in Instacart, a grocery delivery start-up, and Coinbase, a digital coin trader.
Just recently, it invested in Shelf Engine which through the use of AI can predict the products that generate revenue for stores as well as products that do not sell.
The firm also has a stake in the personal finance app Empower, a banking platform specifically targeting the millennials.
CNN noted that Ohanian and Tan have also been behind several startups which are now considered as "unicorns" or of those companies which market value has already reached $1 billion and above.
CNBC, meanwhile, stated that Initialized Capital is keen to invest in startups across different sectors in the market. The firm, however, seemed to have a special interest in the health sector, particularly in startups that are creating breakthrough technology for elderly patients. It has recently partnered with Roma, an online erectile dysfunction company prescription platform.
