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Atomic Outlines Plans For New $150M Fund

, which describes itself as a venture studio that invests exclusively in companies it founds, has raised $150 million in its second fund.

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I talked with , a general partner at Atomic, today about the firm鈥檚 plan for investing and how its strategy differs from traditional venture capital firms.

The San Francisco-based studio plans to create about 20 companies out of its new fund, according to Ng. It鈥檚 鈥渋ndustry agnostic,鈥 although it does see great potential in the healthcare, AI, and real estate sectors, he said.

founded Atomic in 2012 with the goal of creating companies that could in the biggest markets, according to Ng.

Atomic started 10 companies out of its first fund, which raised $20 million in 2013. Companies that it helped create out of that fund include men鈥檚 wellness brand , home rental services provider 鈥 which Ng said has grown more than and in its first year 鈥 聽and , which was in May 2018.

鈥淲e鈥檙e pretty proud of what we were able to achieve with a relatively small initial fund,鈥 Ng told 附近上门 News. 鈥淭hat fund had a 70 percent IRR, which is pretty unheard of. We returned on the fund and then some.鈥

Previous LPs included a number of high-profile individuals including and . This latest fund is made up of primarily institutional LPs鈥攗niversity endowments, family offices, and sovereign wealth funds鈥攁nd also includes participation from , according to Ng.

Looking forward, Atomic is quite bullish on the healthcare space in particular. It puts men鈥檚 health startup Hims more in that category, rather than direct to consumer.

鈥淗ealthcare is such a massive industry that is so broken. There鈥檚 so many problems, especially here in the U.S. where it can be hard to access and super expensive for a lot of people,鈥 Ng said. 鈥淲e鈥檙e actively looking for opportunities to streamline and improve access and decrease costs. We think we鈥檙e just getting started there.鈥

Unlike traditional VC firms, Atomic doesn鈥檛 listen to pitches. And unlike accelerators or incubator programs, it doesn鈥檛 take applications.

Instead, it starts with a person or team with potential鈥攐ften repeat entrepreneurs from its network that Atomic calls founders in residence鈥攁nd explores ideas for companies. Atomic might also start with an idea and find the right fit or 鈥渁 dream team鈥 in terms of a founder or founders.

鈥淏oth are great starting points,鈥 Ng said. 鈥淥ur goal is to get collective passion, conviction and data around an idea and start a company with great founders. Both models are patterned after how some of the greatest companies, such as Uber and Tesla, have been created. There鈥檚 plenty of problems to solve in the world, and lots of talent to work on them. We鈥檙e trying to find a systemic way to pair those two sides up.鈥

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