A new venture capital firm, Chemistry, has launched with a $350 million debut fund to support early-stage software startups.
Founded by three seasoned investors from top VC firms, Mark Goldberg (formerly of Index Ventures), Kristina Shen (previously a general partner at Andreessen Horowitz), and Ethan Kurzweil (a 16-year veteran from Bessemer Venture Partners), Chemistry is making waves in a challenging investment climate by betting on hands-on, personalized support for founders.
While some venture capital funds have scaled back amid market slowdowns, Chemistry is taking a different approach. The firm’s focus will be on seed and Series A investments, with an emphasis on sectors like fintech, infrastructure, and developer tools—areas that have shown resilience despite broader venture market turbulence.
Why Launch Now?
The creation of Chemistry comes at a time when early-stage funding, particularly Series A, has become increasingly elusive for startups. Data from Crunchbase shows seed-stage investments have remained steady in the first half of 2024, but Series A rounds have faced headwinds due to a broader venture capital slowdown.
As capital becomes scarcer, startups are finding it harder to secure larger funding rounds, making Chemistry’s timing crucial.
Goldberg, Shen, and Kurzweil aim to address this gap by not only providing financial backing but also offering deep, operational support. "We are the portfolio services team," the partners emphasized in a statement. “All three of us will actively support each investment, working closely with founders from the trenches.”
In an interview with Forbes, Kurzweil noted that while many VCs focus on scaling, Chemistry will take a different path, investing in just two to three deals per partner annually. This approach allows the firm to maintain a close, hands-on relationship with its portfolio companies—something larger funds often struggle to achieve.
Who Are the Founders?
Each of Chemistry’s co-founders boasts an impressive track record. Goldberg was instrumental in investments like Plaid, a banking platform, and Shen backed companies such as Pave, a compensation planner. Kurzweil has experience leading investments in successful companies like Twitch and PagerDuty, which is now publicly traded.
Chemistry joins a small group of new funds that have surpassed the $300 million mark in a period marked by tighter capital flows. The firm’s debut fund compares to others like Matter Venture Partners, which raised $300 million for tech investments, and Curie Bio, which took in $380 million for its startup accelerator fund.
With its relatively smaller size and commitment to hands-on involvement, Chemistry believes its approach will set it apart in the competitive world of venture capital.
In a sector often characterized by aggressive scaling and large portfolios, Chemistry is betting that personalized attention will be a more valuable offering to startups navigating today’s complex funding landscape
