Four years after accidentally launching VC, the founding father of GTMFund and the Max Altschuler general partner collected a second fund of $ 54 million. It was aimed at $ 50 million.
GTMFund is one of the growing crops of funds “run by the operator”, which signifies that the limited partner investors are individuals who work or are currently working in successful technology firms (known in VC as “operators”).
“They are mostly active in their current company, or maybe they have just finished running in a company that increased from zero to several hundred million revenues,” says Altschuler Techcrunch. He says LP are people from places corresponding to AWS, Opeli, Procore, Fainling and Snowflake.
These LP are largely marketing and sales experts known in the Silicon Valley as “Go to Market”, hence the name GTMFund.
In addition to bringing money, LPS also helps mentor portfolio firms in sales strategies – an area where many startups need assistance – and with employing sellers. They also help the fund find and evaluate young startup firms in which to take a position.
The first fund, launched in 2021, had about 250 operators and only a few institutional investors. He supported firms corresponding to AI Composer Writer (price $ 1.9 billion in the last increase in November), AI Data Center Tech Atlan (which recently collected $ 105 million with a valuation of $ 750 million) and compliance with Vanta security (recently collected 150 Millions of dollars at $ 2.45 billion), among others.
With these achievements Fund II attracted 300 LP operators, in addition to six institutions, including Bain Capital Ventures, Harbourvest, Inovia Capital and Franklin Park.
And Altschuler has moved to the rising rising fund.
It was not his initial intention. Altschuler was once an worker No. 8 in Udeme, selling for the first days. Later he helped Saastra in the startup community and advised several startups, and then launched his own blog called Sales Hacker, which he sold to the outrets in 2018 (although he had bought it since then). He began to take a position an angel by writing early checks about Gong and coal health.
People in a significant Altschuler network still asked him to indicate them learn how to invest an angel. So he decided to do it.
He sent a list of GTM people and shared the idea: “And if we collect a million dollars between 20 to 50 us and put it in 10 companies, and then significantly supported these companies?” he suggested. “And Gangbusters went. It ended with a meeting of $ 22 million for fund I.
LP in the fund can resolve as or as much as they need to help, from quiet investing to highly involved in portfolio firms. GTMFund has also built the functions of the community: like the flow channel of offers, in which LPS can talk; And organizes six dinners a yr, in addition to annual retreats.
“It became only a job of love for me. It’s great fun – he said. “I get the same as our LP. I really like working with these various founders, all these different firms to assist them in this sort of area of interest GTM topic. “
The GTMFund structure as an operator fund is not common, but it is also commonplace. For example, Mallun Yen founded the Collective operator in 2019, which released the gate with $ 45 million, and raised a second $ 92 million in 2022, and also has an enviable portfolio. Another latest example is the Ashley Mayer coalition, which was launched in 2022 from $ 12.5 million.
As for the second GTMFund fund, Altschuler claims that the goal is to get better about 40 early stages in the front stage, seeds and an occasional AO series the size of a check from half a million to $ 1.5 million.