Title: "Alexis Ohanian's Initialized Capital Raises $225 Million for Startups - Latest News from CNN Business"
In a recent announcement, Reddit cofounder Alexis Ohanian's venture capital firm, Initialized Capital, has raised a whopping $225 million to invest in early-stage startups. This marks the fourth and largest fund raised by the San Francisco-based firm, co-founded by Ohanian and Garry Tan.
Ohanian's increased involvement in the firm comes after stepping away from his day-to-day role at Reddit about nine months ago. With their past experiences as engineers, operators, and investors at Y Combinator, Ohanian and Tan credit their success as investors at Initialized Capital.
The firm remains focused on funding early-stage startups but will now be cutting larger checks, such as $1 million, compared to their initial $50,000 investments. This shift reflects the growing trend of increased valuations and deal sizes in recent years.
Initialized Capital has a team of eight partners who offer support to portfolio companies in various areas such as product development, legal, design, and marketing. Ohanian and Tan's approach to funding startups is "thesis agnostic," but they tend to look for businesses with software at their core.
Some of the notable startups they have invested in include Voyage, a self-driving car company, and Ro, a healthcare company focusing on diagnosing and treating erectile dysfunction.
Overall, Ohanian and Tan believe there is still a lot of potential for software to solve big problems, making it their "sweet spot" for investments. This latest fundraise signifies their commitment to supporting innovative startups and driving forward the tech industry.