
Outsiders Fund
Description
Outsiders Fund is a New York-based venture capital firm dedicated to investing in technology companies poised to disrupt traditional, often overlooked, incumbent industries. Established with a core philosophy of identifying "under-the-radar founders," the firm seeks opportunities where technological innovation can significantly transform legacy sectors. Their investment thesis emphasizes backing entrepreneurs who are challenging the status quo and bringing modern solutions to markets that have historically been resistant to change or underserved by mainstream tech venture capital.
The firm primarily focuses on early-stage investments, typically participating in Seed and Series A rounds. Outsiders Fund closed its inaugural fund, Outsiders Fund I, at $20 million in 2020, signaling their commitment to this specialized investment approach. This fund size allows them to be agile and impactful in their target segments, providing crucial early capital to promising startups. They aim to be more than just capital providers, often seeking to partner with founders to navigate the complexities of disrupting established markets.
As of early 2024, Outsiders Fund has built a diverse portfolio, with Crunchbase reporting approximately 36 investments. This extensive portfolio demonstrates their active participation in the early-stage ecosystem and their commitment to a broad range of disruptive technologies. While their primary focus is on initial investments, they also reserve capital for follow-on rounds to support their portfolio companies' continued growth. The firm's strategy is centered on long-term value creation by backing companies that can achieve significant market penetration and redefine industry standards.
Investor Profile
Outsiders Fund has backed more than 27 startups, with 4 new investments in the last 12 months alone. The firm has led 10 rounds, about 37% of its total and boasts 1 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Seed, Series A, Series B rounds (top funding stages).
- Majority of deals are located in United States, Canada.
- Strong thematic focus on Software, Artificial Intelligence (AI), Information Technology.
- Led 2 rounds in the past year.
- Typical check size: $250K – $1.5M.
Stage Focus
- Seed (48%)
- Series A (30%)
- Series B (15%)
- Pre Seed (7%)
Country Focus
- United States (85%)
- Canada (11%)
Industry Focus
- Software
- Artificial Intelligence (Ai)
- Information Technology
- Health Care
- Aerospace
- Medical
- Developer Platform
- Enterprise Software
- Hardware
- Machine Learning
Frequently Asked Questions
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