Afore Capital, a prominent pre-seed investment firm, successfully raised its fourth fund worth $185 million, introducing its new flexible investment strategy dubbed pre-seed 2.0. Founded to offer more substantial initial capital than typical accelerators, Afore has seen its 200 startups collectively valued at over $13.5 billion since its inception in 2017. The firm is now adapting its approach, allowing for smaller investments tailored to specific needs, including launching an 8-week Founders-in-Residence program aimed at supporting ideation-stage founders, thus expanding its commitment to nurturing new entrepreneurial talent.
"We can write a small check, we can write a bigger check, but the idea is, we want to help you get the business off the ground," Banjeri said.
Despite Afore's early success, Banjeri and Gaurav say that not all young startups need as much capital as the firm has been offering.
When Afore raised its third $150 million fund in 2022, the firm wrote checks ranging from $1 million to $2 million, which the general partners Anamitra Banerji and Gaurav Jain argued helped companies grow faster.
Afore's 200-company portfolio has a collective valuation of over $13.5 billion, and over the last year, Afore has returned $47 million to its limited partners.
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