Hustle Fund, a pre-seed fund built by former operators and founders, has raised $30 million for a new fund, per SEC filings. Hustle Fund first filed paperwork for this fund, its second to date, in May 2019 with intention to raise $50 million. Its inaugural investment vehicle closed at $11.5 million.
Hustle Fund was created by Elizabeth Yin and Eric Bahn, two former 500 Startups partners, with the goal of investing in pre-seed software startups. The firm has traditionally operated by investing $25,000 in a company, usually with a minimum-viable product, and then works with the team to help them grow. It does around 50 investments per year, according to its website.
It’s a small but focused investing approach, one that has gotten Hustle Fund into deals such as Webflow, NerdWallet and The Pill Club. But, as pre-seed grows and companies raise absurdly high first-check rounds, the need for bigger checks might be necessary for VCs to continue getting into deals. Thus, a bigger fund size for a fund a few years in is both practical and expected.
Still, don’t expect Hustle Fund to be changing up its investment appetite just yet. Yin joined us at Extra Crunch a few months ago to detail her check appetite.
“I think to a certain extent, putting money into faster experiments helps, but it only goes so far,” Yin said. “You can’t drive speed of execution with money; it happens through the speed of learning. And I think that’s something that there’s an upper bound as to how much and how many resources you can put into increasing that speed of learning in the earlier stages.”