According to GeekWire, Seattle venture firm Founders’ Co-op has raised $50 million for its sixth fund, matching the size of its previous 2021 fund. The firm plans to invest in approximately 30 companies, with 80-90% of investments targeting Pacific Northwest founders at pre-product or pre-revenue stages. Average initial checks will range from $1 million to $1.5 million, with the firm aiming for 10% ownership at first investment. Founding managing partner Chris DeVore emphasized that the firm’s strategy remains focused on being “the best first-check investor” in the region rather than competing with larger later-stage investors. The firm is now based inside Foundations, the Seattle entrepreneur hub launched by partner Aviel Ginzburg following Techstars Seattle’s closure last year.
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The Strategic Power of Staying Local
Founders’ Co-op’s consistent $50 million fund size represents a deliberate counter-trend in venture capital, where fund inflation has become commonplace. While many firms have dramatically increased their assets under management, Founders’ Co-op maintains what venture veterans call “fund size discipline” – recognizing that larger funds inevitably push investors toward bigger deals and later stages. This creates a crucial gap in early-stage funding that Founders’ Co-op expertly fills. Their approach demonstrates that in venture capital, sometimes the most sophisticated strategy is knowing what not to do.
Pacific Northwest’s Emerging Ecosystem Advantage
The firm’s bullish stance on Seattle and the broader Pacific Northwest comes at a pivotal moment for the region. While Silicon Valley grapples with talent dispersion and rising costs, the Pacific Northwest offers a compelling alternative with its deep technical talent pool from Amazon, Microsoft, and the University of Washington. The region’s startup ecosystem has matured significantly since Founders’ Co-op’s 2008 founding, creating a virtuous cycle where successful exits like Remitly and Auth0 create experienced operators who reinvest in the next generation. Foundations, the new entrepreneur hub, represents a critical infrastructure development that could accelerate this flywheel effect.
The Art of the First Check
Founders’ Co-op’s specialization in first checks between $1-1.5 million addresses a fundamental market inefficiency. Many seed funds have moved upstream to larger rounds, while Series A investors have become more conservative about backing unproven teams. This leaves ambitious technical founders in a funding valley of death that Founders’ Co-op specifically targets. Their focus on “the people we back and the problems they choose to solve” rather than specific verticals reflects a sophisticated understanding that breakthrough companies often emerge from unexpected places. As DeVore noted in the fund announcement, this people-first approach transcends even the current AI hype cycle.
Shifting Pacific Northwest Venture Dynamics
The firm’s continued success signals broader changes in the Pacific Northwest venture landscape. While Madrona’s recent $770 million fund captures headlines, Founders’ Co-op demonstrates that specialized, stage-specific funds play an equally vital role in ecosystem development. Their model creates a natural handoff opportunity where they can nurture companies through the risky early stages before passing them to larger funds for growth rounds. This specialization benefits the entire ecosystem by creating clearer pathways for founders and reducing duplication among investors. The presence of both mega-funds and focused early-stage specialists like Founders’ Co-op indicates the Pacific Northwest market is maturing into a truly tiered venture ecosystem.
The Foundations Advantage
The firm’s location within Foundations represents a strategic moat that extends beyond mere physical proximity. In an era of remote work and distributed teams, concentrated physical hubs for founder community have become increasingly valuable. Foundations serves as a natural deal flow generator and quality filter, allowing Founders’ Co-op to identify and build relationships with promising founders before they formally seek funding. This community-centric approach creates a sustainable competitive advantage that larger, more geographically dispersed funds cannot easily replicate. It’s a reminder that in venture capital, the best deals often come through relationships rather than inbound pitches.
