Venture capital performance may be measured in ten-year chunks, but only an elite club of firms can claim to have stayed consistent—let alone functional—for anywhere close to that timeframe. David Tisch’s BoxGroup, which boasts 16 years of operation and just closed $550 million in new funding, can claim a spot among those ranks.
For Tisch, the secret has been to serve as the Switzerland of VC. Many of the industry’s top outfits gain their reputations from leading monster deals or jockeying for board seats at Silicon Valley’s hottest startups. But BoxGroup’s lane has long been to join a dizzying number of early-stage rounds, allowing the firm to take smaller positions while working hand-in-hand with other firms. The approach has created an enviable portfolio consisting of a murderers’ row of companies from the past decade-plus: Ramp, Stripe, Plaid, Cursor, Airtable, Oscar, and the list goes on. “We’re able to work with every other fund in the market versus against them,” Tisch tells me.
Tisch has been a linchpin for the burgeoning New York tech scene since he first started getting serious about angel investing in 2009. He furnished BoxGroup’s first three funds with his own capital before deciding to bring on limited partners six years ago. The fresh $550 million is split across two funds: an early-stage vehicle, BoxGroup Seven, and an opportunity fund for follow-on investments called BoxGroup Leaven. (He’s always picked rhyming names for the twin structure—six and picks, five and strive, four and more, joking that this was the toughest one yet.)
And though around 30% of BoxGroup’s investments are typically in New York companies, and eight of its ten investors are here, Tisch says he views the city as his home—not as the thesis of his firm. The Bay Area is still the predominant ecosystem for value creation in tech, he notes. But regardless, competition between the regions is not part of the BoxGroup calculus. “We don’t view geography as an important feature in startup creation,” he tells me.
That agnostic view toward sector and location has allowed BoxGroup to build a bench of companies that is only rivaled by incubators like Y Combinator. Tisch expects to make between 120 and 180 deals out of its newest core fund, and between 20 and 40 out of its opportunity fund. “Our job is to see companies,” he says. “Our job is to wake up and meet founders, wherever they are.”
Tisch admits that as competition for LP dollars intensifies, it’s increasingly obvious that all venture investors, at the end of the day, are offering a similar service. And for a firm with a track record like BoxGroup’s, it would be easy for it to rest on its reputation alone. But Tisch says that he has to prove out of every new fund that he can stay relevant.
Tisch credits BoxGroup’s unwavering approach with his firm’s enduring success. “We like to be your favorite investor, and that’s different than saying [we] want to be your best investor,” he says. That means sticking with companies like Clay and ID.me for years through their troughs and peaks, and understanding that startups—and not only venture firms—need long time horizons. “If we change what we do every fund cycle, it’s a misalignment with founders,” he says. “We fund people.”
Leo Schwartz
X:@leomschwartz
Email:[email protected]
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VENTURE DEALS
- Defakto, a Palo Alto, Calif.-based non-human identity security platform, raised $30.8 million in Series B funding. XYZ Venture Capital led the round and was joined by TheGeneralPartnership, BloombergBeta, and WndrCo.
- knownwell, a Boston, Mass.-based provider of primary and specialized obesity and overweight care, raised $25 million in funding. CVSVentures led the round and was joined by MassMutualCatalystFund, IntermountainVentures, and others.
- SageCare, a Palo Alto, Calif.-based AI platform designed for health care navigation, raised $20 million in funding. Yosemite led the round and was joined by GeneralCatalyst, Metrodora, SV Angel, and others.
- FinsterAI, a London, U.K.-based developer of AI-powered research and task automation platform for investment banks and asset managers, raised $15 million across Series A and seed rounds. FinTechCollective led the Series A round and PeakXV led the seed round.
- AdsGency, a San Francisco-based developer of a platform designed to be an AI ad agency, raised $12 million in seed funding. XYZVentureCapital led the round and was joined by StreamlinedVentures, HF0, Hat-TrickCapital, and others.
- MoonshotAI, a New York City-based developer of an AI-powered platform designed to autonomously optimize online stores, raised $10 million in seed funding. MightyCapital led the round and was joined by OceansVentures, Uncorrelated, GarudaVentures, and AlmazCapital.
- FourierHealth, a Miami, Fla.-based data processing and data exchange platform, raised $8.4 million in funding. Yosemite led the round and was joined by NextGenVenturePartners, InnosparkVentures, and others.
- MilvusAdvanced, an Oxford, U.K.-based developer of rare metal alternatives, raised $6.9 million in seed funding. HoxtonVentures led the round and was joined by LQDVentures, Übermongen, TuesdayCapital, and others.
- Chipmind, a Zurich, Switzerland-based platform building AI agents designed to accelerate chip manufacturing, raised $2.5 million in funding. Founderful led the round and was joined by angel investors.
PRIVATE EQUITY
- ARCHIMED MedTech took ZimVie, a Palm Beach Gardens, Fla.-based dental technology platform spun out of ZimmerBioment, private for approximately $730 million.
- Ardian agreed to acquire a minority stake in JPBSystème, a Villaroche, France-based manufacturer of aeronautical locking mechanisms. Financial terms were not disclosed.
- Remsoft, backed by BannekerPartners, acquired LOGR, an Adelaide, Australia-based forestry technology company. Financial terms were not disclosed.
EXITS
- MARI acquired TodayTixGroup, a New York City-based digital ticketing company, from GreatHillPartners. Financial terms were not disclosed.
FUNDS + FUNDS OF FUNDS
- DiversisCapitalManagement, a Los Angeles, Calif.-based private equity fund, raised $1.2 billion for its third fund focused on lower middle-market companies.
PEOPLE
- Benchmark, a San Francisco and Woodside, Calif.-based venture capital firm, hired EverettRandle as general partner. Formerly, he was with KleinerPerkins.
- OctopusVentures, a London, U.K.-based venture capital firm, hired JamieKennell as senior partner and head of portfolio strategy. Formerly, he was with PembrokeInvestmentManagers.