Index Ventures thinks new startups will emerge in the downturn and is putting $300M behind that bet

News Summary

  • I asked, why double-down on early stage for Index Ventures?Nina Achadjian, Index Partner based in SF told me via email: “Throughout our experience as early stage investors, we realized that there’s a need for a different kind of early stage fund.
  • It’s why we’ve set up Origin II as a highly collaborative fund that’s open to working with seed funds, solo GPs and angels,” said Rimer.How is the early stage environment in the US?
  • Perhaps harking back to the age-old view that the best startups are born counter-cyclically, Index is today upping-the-anti with a second “Origin Fund” which will be a $300 million Seed fund, Yes folks, that’s $100m larger than Origin I last year.
  • We proactively bring in seed funds, solo GPs and angels to co-invest with us so that together we can provide entrepreneurs with the best possible support network and chance of success.”However, why raise a bigger fund than the previous one?
  • Index’s other funds include early-stage fund Index Ventures XI ($900m), and growth fund Index Ventures Growth VI ($2bn).
  • But with a global recession looming in the next year, a Crypto ‘nuclear winter’, and external factors like the war in Ukraine, you might think that investors like Index would be drawing in their horns.
Back in April 8, 2021 Index Ventures, one of the very few original gangsters of the European VC scene, said it was kindve going back to its roots. It announced the launch of a new $200 million dedica [+5346 chars]