Fox Ventures - October 25th, 2023

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Fox Ventures is the venture capital arm of F Partners, a Private Office that provides bespoke advice to Family Offices and Entrepreneurs.

Through our unique network of Family Offices, Entrepreneurs, and Tier 1 VCs we get the opportunity to co-invest alongside them.

We are sector/stage agnostic and only invest where a top venture firm or one of our partners is leading the round.

If you’re an accredited investor, get access to our deal flow and invest alongside us here 

Podcast Appearance 🎙

I caught up with Benedikt Langer, Advisor to The Sutton Firm, a family office that has been investing in emerging managers in the VC space. 

We spoke about all things venture capital, including direct investing, fund-of-funds, and direct fund allocations. We tried to focus on how family offices can or should access the asset class and it was great to get first-hand advice from a family who I think is doing it not only correctly, but very thoughtfully. 

We both agreed that venture capital isn’t an easy asset class so when it comes to family offices, having a strategy is key. The Sutton Firm is doing it professionally (i.e. to make money) and so they’re effectively building an internal fund-of-funds model focused on emerging managers.

More from our chat in the coming weeks. 

Check out a clip below 👇

Portfolio company news 🗞

Fox Ventures portfolio company, Marco, announces their $200M credit facility from MidCap Financial and Castlelake to expand its lending platform and suite of services for SMEs in the United States and LatAm.

Marco is building the US and LatAm’s first tech-enabled trade financing platform for small and medium-sized enterprises. The three-year-old fintech has been on a tear recently, lending $100M in 2022 faster than any other LatAm fintech and over $250M total since inception.

We invested ~$250k in Marco’s Seed round in 2021 and had the opportunity to double down in 2022.

Harvard data scientist upends finance community with returns in this market

The AI revolution has already begun to rewire Wall St, and its impact has been strongly felt in one growing market in particular. Because, thanks to a Harvard data scientist and his crack team, everyday people can now benefit from a previously “off-limits” investment. 

The company that makes it all possible is called Masterworks, whose unique investment platform enables savvy investors to invest in blue-chip art for a fraction of the cost. Their proprietary database of art market returns provides an unrivaled quantitative edge in analyzing the art market. 

So far, it's been right on the money. With 16 exits, Masterworks has achieved a 100% positive net returns track record, with recent exits delivering +17.8%, +21.5%, and +35.0% annualized net returns.

Intrigued? Readers can skip the waitlist with this referral link.

Performance of exited investments is not representative of artwork that has not yet sold and past performance is not indicative of future results. See important disclosures at masterworks.com/cd

What I’m reading 📖

Deals I’m seeing 💼

We attended our monthly deal webinar with one of our single family office’s proprietary networks where 731 family offices and accredited investors joined us to see deals backed by Sequoia, Accel, Lightspeed, Google, SoftBank, Coatue, amongst other tier 1 investors. Fox Ventures is taking a further look into these companies:

AI/FinTech/LegalTech Company: AI as a service to analyze business contracts.

• 558% YoY growth

• $3.5M ARR

• 20+ enterprise customers

Over 50% of the current round is committed and the company is backed by Guggenheim, PIF, Great Oaks Venture Capital, Align Ventures, and others.

AdTech Company: Audio advertising platform for mobile gameplay used by notable customers, such as McDonald’s, eBay, Netflix, and others.

• $55M deal pipeline

• 8600% publisher growth rate with 3.5% advertiser churn

• Expecting to end 2023 with ~$10M in sales and 54% gross margins

The company is raising up to $25M in a Series A extension and is backed by Google, Sequoia Capital Scout Program, Lightspeed Venture Partners, and others.

InsurTech Company – AI-enabled platform streamlining operations, customer service, and cross-sell opportunities for the independent insurance agencies that constitute 62% (and growing) of the $785 billion US P&C insurance market.

• $4.2M ARR → on track for $7M ARR by EOY 2023

• $120M in gross written premium (GWP)

• The team is led by industry veterans of some of the largest InsurTech companies

$3M left in a $5M round. Investors include ManchesterStory Group, Plug and Play, UpHonest Capital, and more.

PropTech Company – Home equity access solutions targeting cash-light/rich-in-equity homeowners in a massive $33T market.

• $31M in top-line revenue FY2022

• Innovating by using Home Equity Agreements (HEA) for homeowners that can’t qualify for home equity loans or HELOCs

• Raised ~$500M in credit in 2023 from Barclays, Texas Capital Bank, and Jefferies

The company is raising $10M in a Series A extension to scale faster with greater profitability and solidify its position as the dominant market leader.

*Nothing in this email should be taken as investment or legal advice. You should consult your legal counsel and accountant to understand how a particular investment will impact your portfolio and tax status. You are responsible for doing your own due diligence on any investment you make.

Fox Ventures is running a new SPV deal this week that I’m personally very excited about. The company was started by a long-time friend of mine, and the team is going after a very large market while being extremely capital-efficient.

If you’re an accredited investor, you can get access to my deal flow by joining the Fox Ventures Syndicate.

If you’d like an introduction to a company, please reply and let me know - this is reserved for larger potential checks.

Advisory hours 🗓

Chad Fox is an advisor to entrepreneurs and family offices through his firm F Partners. Chad has a global network that spans from North America to the Middle East and can help you with formation, fundraising, business development, and all the challenges that come with building an early-stage company. He is a qualified lawyer, angel investor, and venture capitalist.

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