Trust Ventures strictly focuses on investing in startups only. The company believes by investing in startups, it will be able to improve society significantly, but face significant public policy barriers that stifle growth.
FREMONT, CA: Texas-based venture capital firm Trust Ventures raised USD 70 million in the first close of a funding round out of the targeted USD 100 million. The venture capital firm is backed by Koch Industries Chairman and CEO Charles Koch, currently ranked as the 11th richest person in the world with a net worth of USD 50.5 billion.
The company, founded in January 2018 by Salen Churi and Brian Tochman, strictly focuses on investing in startups only. Trust Ventures believes by investing in startups, it will be able to improve society significantly, but face significant public policy barriers that stifle growth. The company also aims to reduce regulations which are considered to be outdated or protect established corporate interests.
“We look for companies that have tremendous potential for societal impact, and are in a position to get products and services to people who need them the most, but need help navigating through a complex maze of policy challenges,” said Salen Churi, Co-founder, Trust Ventures. “We are not looking for nice to have, but need to have, or companies that can touch hundreds of millions, or billions, of lives.”
Trust Ventures closed its first fund of USD 35 million in June 2018. Seventy percent of the first checks were written using these funds and the remaining 30 per cent is expected to be deployed before the end of the year. The company has also allocated 50 percent of the first funds for follow on investments in portfolio companies. The same strategy will be applicable for the new funding round, with an average first check size of USD 3 - 4 million for 12 - 15 companies.
“Many of our greatest societal challenges are no longer simply technological, but also require addressing a complex system of public policy barriers that too often serve established companies rather than innovators and consumers. Entrepreneurs can drive tremendous social impact in key areas like affordable housing, healthcare, and zero-emission energy, but these are often the areas with the highest barriers. We offer our portfolio the strategic guidance they need to overcome those barriers and get these innovations into the hands of the people who need them most," added Churi.
The company has already made investments across a range of industries, including energy, food, insurance, and healthcare. Some of Trust Ventures’ portfolio companies include Oklo, ICON, and Emergy Food. California based Oklo has developed next-generation fission reactor technologies that can supply inexpensive zero-emission energy and run on fuel recycled from existing reactors.