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Initialized Capital

Initialized Capital is a venture capital firm co-founded by Garry Tan and Alexis Ohanian in 2012. The firm is known for its early-stage investments and has grown significantly since its inception, managing over $3.2 billion in assets as of 2023.

Founding and Early Years

Initialized Capital was established to address a gap identified by Garry Tan during his tenure at Y Combinator. Tan, along with Ohanian and Harjeet Taggar, raised $7 million for the firm's first funding round in 2012. The following year, they raised an additional $39 million. By 2016, Initialized Capital had raised a $115 million third fund, marking its growing influence in the venture capital landscape.

Investment Philosophy

Initialized Capital prides itself on being "the first check to folks when they first quit their jobs," as Garry Tan described. The firm focuses on early-stage financing, often investing in companies at the seed and Series A stages. This approach is particularly crucial as tech companies increasingly delay IPOs and the sector becomes more consolidated at the top.

Notable Investments

Initialized Capital has a diverse portfolio, with investments in various sectors including health tech and elder tech. Some of its notable investments include:

  • Coinbase, a cryptocurrency exchange
  • Instacart, a grocery delivery service
  • Flexport, a supply chain software company
  • Roman, a digital erectile dysfunction prescription platform
  • TruePill, an online pharmacy

Growth and Expansion

The firm has continued to grow, closing its fourth fund with $225 million in fresh funding. By 2021, Initialized Capital had raised its largest fund to date, amounting to $700 million. The firm now manages over 200 active portfolio companies and has been recognized for its diverse team and inclusive investment practices.

Leadership and Transition

In 2023, Garry Tan stepped down from his full-time role at Initialized Capital to become the President and CEO of Y Combinator. During his tenure, Tan built a superb team that continues to invest in promising startups. The firm is now led by managing partners Jen Wolf and Brett Gibson, who have been instrumental in its day-to-day operations.

Vision for the Future

Initialized Capital aims to be a lasting institution in venture capital, focusing on unlocking late-adopter industries and supporting founders through their entrepreneurial journeys. The firm continues to be a significant player in the venture capital ecosystem, with a vision to build a VC firm for "the next 100 years."

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Career of Garry Tan

Garry Tan, born in 1981 in Winnipeg, Manitoba, is a prominent venture capitalist, entrepreneur, and software engineer. He is best known for his roles as the co-founder of Initialized Capital and the CEO of Y Combinator.

Early Career

Tan's career began with a strong foundation in computer systems engineering, which he studied at Stanford University from 1999 to 2003. During his time at Stanford, he was involved in various activities and societies, including the Asia Pacific Student Entrepreneurship Society, Stanford Consulting, and the Phi Kappa Psi Fraternity.

Palantir Technologies

After graduating, Tan joined Palantir Technologies as one of its earliest employees. At Palantir, he worked as a designer and engineering manager, contributing significantly to the company's early development, including designing the company logo.

Posterous and Posthaven

In 2008, Tan co-founded Posterous, a blogging platform that gained significant traction for its simplicity and ease of use. Posterous was eventually acquired by Twitter in 2012 for $20 million. Following the shutdown of Posterous, Tan co-founded Posthaven to continue providing a reliable blogging platform for users.

Y Combinator

Tan joined Y Combinator in 2011 as a designer in residence and later became a partner. During his tenure, he played a crucial role in shaping the YC experience for founders, including the development of key tools like Bookface and the Demo Day website. Tan was instrumental in compiling a directory of top interaction and visual designers and wrote the first seed round check for Coinbase in 2012.

Initialized Capital

In 2012, Tan co-founded Initialized Capital with Alexis Ohanian and Harjeet Taggar. The venture capital firm quickly gained a reputation for its successful investments in early-stage startups. Initialized Capital's first funding round raised $7 million, followed by a $39 million round in 2013 and a $115 million third fund in 2016. The firm has invested in over 200 startups, including Instacart and Coinbase.

Return to Y Combinator

In January 2023, Tan returned to Y Combinator as its President and CEO. Under his leadership, YC has continued to support and accelerate the growth of numerous startups, maintaining its position as one of the most influential startup accelerators in the world.

Political Engagement

Beyond his professional achievements, Tan is also known for his engagement in San Francisco politics. He has been an active commentator on social media and a political donor, often aligning with moderate Democrats and occasionally clashing with progressives.

Personal Investments and Recognition

Tan has made 88 personal investments and 28 exits, according to AngelList. He has been recognized in various lists, including the Midas Brink List by Forbes and the 40 under 40 in Silicon Valley by the Silicon Valley Business Journal. As of 2021, his net worth is estimated to be $200 million.

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Garry Tan

Garry Tan (Chinese: 陳嘉興; Pe̍h-ōe-jī: Tân Ka-heng; born March 21, 1981) is an American venture capitalist, entrepreneur, and software engineer. He is the CEO of Y Combinator and a co-founder of Initialized Capital. Tan has also co-founded the blogging platforms Posterous and Posthaven. He was an early employee at Palantir Technologies and previously served as a partner at Y Combinator.

Early Life and Education

Garry Tan was born in Winnipeg, Canada to a Chinese Singaporean father and a Burmese-Chinese mother. The family moved to Fremont, California in 1991. Tan developed an interest in programming at the age of 14 and secured his first job by cold-calling businesses listed in the Yellow Pages. He graduated from American High School and later earned a degree in Computer Systems Engineering from Stanford University.

Career

Early Career

Tan began his professional journey at Microsoft before becoming the 10th employee at Palantir Technologies, where he contributed as a designer and engineering manager. He also designed the company's logo.

Posterous and Posthaven

In 2008, Tan co-founded Posterous, a blogging platform that gained significant traction and was eventually acquired by Twitter in 2012 for $20 million. Following the shutdown of Posterous, Tan co-founded Posthaven to provide a permanent blogging solution.

Y Combinator

Tan joined Y Combinator in 2011 as a designer in residence and partner. During his tenure, he played a crucial role in building key parts of the YC experience for founders, including the internal software platform Bookface and the Demo Day website. He also wrote the first seed round check for Coinbase in 2012.

Initialized Capital

In 2012, Tan co-founded Initialized Capital, a venture capital firm. The firm raised $7 million in its first funding round and subsequently raised $39 million in 2013 and $115 million in 2016. Initialized Capital has invested in over 200 startups, including Instacart and Coinbase.

Return to Y Combinator

In January 2023, Tan returned to Y Combinator as its President and CEO. Under his leadership, the accelerator aims to continue its legacy of supporting early-stage startups.

Personal Life

Garry Tan is married to Stephanie Lim, and they have two children, Garrison and Solomon Stephanson. The family resides in San Francisco, California. Tan is also a board member of the San Francisco Museum of Modern Art and a member of the Y Combinator Alumni Advisory Board.

Notable Investments

Tan is an active angel investor and has invested in companies such as Slack, Gusto, and Zenefits. His investments have significantly contributed to his estimated net worth of $200 million as of 2021.

Recognition

Garry Tan has been recognized in various lists, including the Silicon Valley Business Journal's "40 under 40" in 2013 and Forbes' Midas Brink List in 2018. He is known for his intuitive feel for user experience and design, making him a highly respected figure in the tech and venture capital communities.

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