Dick Costolo and Adam Bain, famend early Twitter execs who served as firm’s CEO and its chief working officer, respectively, have quietly closed a second enterprise fund simply one-and-a-half years after disclosing they’d secured $135 million for a debut fund below their agency, 01 Advisors.
According to an SEC submitting, they wrapped up their second fund late final week with $325 million in capital commitments from 81 buyers.
We’ve reached out to the agency and hope to share extra quickly. In the meantime, its technique seems to focus on extra concentrated bets in each the patron and enterprise spheres — with checks going out each early and typically later in a startup’s trajectory.
Among these recipients is Literati, a virtually five-year-old, Austin, Tex.-based e book membership subscription service that raised $40 million in Series B funding in January led by Felicis Ventures; Tipalti, a 10-year-old, Israel-based firm that develops automation software program for international funds and raised $150 million in Series E funding at a $2 billion valuation again in October (01 Advisors joined as a follow-on investor); and SpotOn Transact, a funds software program startup that raised $50 million in Series B funding final yr led by 01 Advisors. (Worth noting: the corporate raised a $60 million Series C spherical simply six months later. DST Global led that subsequent spherical, with participation from 01 Advisors and others.)
In truth, quite a few of the outfit’s investments have hit the fuel in the course of the pandemic, together with the San Francisco-based psychological well being and wellness platform Modern Health, which final week introduced $74 million in Series D funding only a few months after saying $51 million Series C funding. The startup, reportedly now valued at $1.17 billion, has raised roughly $170 million to this point; 01 Advisors has joined the final two rounds.
01 Advisors has itself largely remained the identical measurement because it publicly launched in August 2019, years after Costolo and Bain had begun investing in startups on a person and joint foundation.
In addition to Costolo and Bain and Dave Rivinus, who spent 4 years in company improvement and finance at Twitter and can also be a founding associate of the agency, Kelly Kovacs is a associate on the agency. Kovacs was Costolo’s chief of employees at Twitter earlier than becoming a member of Color Genomics in the same capability, then founding her personal startup meant to empower government assistants. She joined 01 Advisors full time in 2018.
Jenny Pater is in the meantime the agency’s operations supervisor.
01 Advisors did just lately listing a place for a senior affiliate.
Costolo, who nice up in Troy, Michigan, discovered himself within the headlines in October when he fired off an incendiary tweet concerning the choice of Coinbase founder and CEO Brian Armstrong to publicly discourage worker activism and political discussions at work, a stance that drove no less than 60 staff to take a severance package deal provided to them afterward.
While some enterprise leaders had been fast to reward Armstrong, Costolo wasn’t shy about hiding his disgust over Armstrong’s place. “Me-first capitalists who assume you possibly can separate society from enterprise are going to be the primary folks lined up in opposition to the wall and shot within the revolution,” he tweeted. “I’ll fortunately present video commentary.”
Bain, a long-suffering Browns fan (like all native Clevelanders), has in the meantime been busy, too. In addition to scouting for startups, he now sits on the general public firm boards of each the true property tech outfit Opendoor and the house tourism firm Virgin Galactic.
01 Advisors served as a co-sponsor of the SPAC that took Opendoor public, together with investor Chamath Palihapitiya. Palihapitiya additionally spun up the blank-check firm that took public Virgin Galactic and the corporate invited Bain to be a director as that merger was coming collectively.
Earlier bets by the pair — as angel buyers — embrace the company journey web site TripActions and the linked health startup Tonal.