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Dear friends,
Q1 was our most active quarter ever. We closed three new investments in startups disrupting clinical trials, private aviation, and warehouse logistics. We also hosted 6 community events in New York, San Francisco, Los Angeles, and Durham.
The most exciting founders we’re meeting right now are building 'full-stack' startups—ambitious founders combining multiple technology primitives and business models into bespoke, industry-specific solutions. These companies are hard to categorize. They span industries, technology modalities, and rarely fit cleanly into a single bucket on any VC market map.
We’ve long believed generational startups don’t emerge as copycats. They come from founders who can clearly diagnose the root causes plaguing our industries and then ambitiously set out to redesign them. There are so many powerful technology building blocks today that can be combined in creative ways. We’re enjoying the privilege of investing in this era and can’t wait to publicly announce some of our latest investments with you.
Portfolio Updates
Garner Health announced a $118M Series D, led by Kleiner Perkins.
Garner is an HR benefits solution, an enterprise healthcare analytics product, and a consumer health navigator all at once. Revenue grew 130%+ YoY across 700 employer clients and 2.5M members. By analyzing 60B+ medical records to identify the top 20% of doctors by outcomes, Garner delivers 80% lower out-of-pocket costs for employees and 12% lower total healthcare spend for employers in year one.
Grow Therapy raised a $150M Series D led by TCV and Goldman Sachs.
Grow is a patient-therapist marketplace, business infrastructure for providers, a provider network, and now an HR benefits program—all in one. The platform has scaled to 10M+ appointments and 26,000 providers across 125+ health plans, covering 220M lives.
Dispatch is featured as an AI category leader in wealth management.
The team was recently featured in Insight Partners WealthTech market map, and Citywire RIA featured their latest enterprise integration with Charles Schwab, enabling seamless digital account opening via APIs.
Knock released no-code data sources, trigger workflow functions, and AI agents.
These new primitives allow Knock customers to orchestrate third-party tools with their messaging infrastructure in just a few clicks, or deploy agents that leverage full system context to automate complex workflows.
CoFound was featured on Fun Raising podcast to break down our diligence framework, why we skip the standard pitch in favor of hearing a founder's core beliefs, and why the strongest founders try to invalidate their market thesis first.
Where We’re Investing
Fund II is one-third deployed across 7 companies, 7 industries, and 7 cities. Not intentionally, but because that's where we found the best founders tackling the most ambitious problems.
We look for three things in our founders: an irrational reason for starting a company, a unique insight about a market, and plausible compounding advantages at scale.
As AI compresses the execution gap in software, we've gravitated toward applied AI and hard tech. This is where we’re finding today's most ambitious builders. In fact, four of our seven recent investments include a hardware component— a reflection of our interest in multidisciplinary products. We expect this trend to grow as AI reduces complex engineering tasks into simple, easy-to-apply primitives.
CoFound is an idea-stage venture fund backing visionary founders with unique insights into esoteric markets. We invest in highly ambitious founders who are boldly redesigning traditional industries from first principles. Contact us.