In the Silicon Valley pantheon, few names echo as prominently as those of former Twitter top brass Dick Costolo and Adam Bain. Their latest endeavor, however, isn’t what you might expect from two tech titans with social media pedigrees. Together, they’re steering a different course with 01 Advisors, their venture capital firm which has recently bolstered its coffers by a hefty $395 million for its third fund.
Venture Beyond Social Media: 01 Advisors’ Latest Funding Feat
Far from seeking out the next Twitter or Facebook, 01 Advisors has carved a niche in Series B investments, targeting companies that are reshaping the business software and fintech landscapes. The firm’s portfolio is a testament to this strategy, boasting stakes in high flyers like Tipalti and Honeybook, alongside other burgeoning platforms that streamline operations from payments to project management.
A New Captain Joins the Crew
The venture’s crew has welcomed a seasoned navigator: David Fischer, the former Chief Revenue Officer of Facebook. Fischer’s 11-year tenure at the social media behemoth has equipped him with an extensive network and insights invaluable to 01 Advisors. Initially an operating partner, Fischer’s ascent to general partner coincides with the firm’s latest fundraising success, collectively managing a war chest of $920 million.
Strategy Over Seats: A Conversation with the Partners
In a revealing conversation with the triad, it becomes clear that their strategy eschews board seats—a move inspired by the legendary business coach Bill Campbell’s advice during his time at Twitter. This preference for a hands-on, but board-free approach allows them a different kind of intimacy with the companies they back, acting more as mentors than overseers.
The Game of Numbers: Investing Amidst Market Froth
Launching a firm amidst the exuberance of recent years, 01 Advisors adopted a selective and concentrated investment strategy, opting for quality over quantity. Despite the slowing pace of Series B investments in the current climate, the partners remain unperturbed, sticking to a handful of core positions and avoiding hasty exits through secondary sales.
Facing the Twitter Storm: A Unique Perspective
Given their unique vantage point, it’s impossible to ignore their thoughts on the current state of Twitter under Elon Musk’s command. They offer a blend of insight and humor, acknowledging the inherent challenges and the resilience of the platform’s network effects, which, as they quip, rival the tenacity of a proverbial cockroach post-nuclear fallout.
The “Everything App” Debate: Skepticism Meets Opportunity
On the topic of Musk’s ambitions for an “everything app,” the trio maintains a healthy skepticism. They reference Facebook Messenger’s past attempts at creating a super app and the unique success of such platforms in China, suggesting a more measured, focused approach may be prudent despite the allure of integrating commerce and communication.
Wrapping Up: The Road Ahead
With 01 Advisors’ latest fund, Costolo, Bain, and Fischer are setting the stage for continued impact in the venture capital realm. Their collective expertise, network, and discerning investment thesis position them as a formidable force in supporting the next generation of businesses poised to redefine the digital economy.
Their journey is not merely about funding startups; it’s about shaping the future of how businesses operate and thrive. And for anyone keen on the intersection of technology, commerce, and innovation, this Silicon Valley saga is one to watch.
