Like the website says, Spearhead is where founders get their first fund.
How does it work? Founders accepted into the program get $1 million to invest. Based on the success of those investments, they are eligible to get another $5 million. Spearhead will also provide follow-on capital for superstars in their portfolio.
Is this Xavier’s School for Gifted Youngsters?
Pretty much, and Professor Xavier is none other than Naval Ravikant.
Spearhead teaches the founders how to invest and takes over the back office minutiae, so founders can hone in on their investing skills.
The learning isn’t behind the desk in front of a chalkboard though. Its designed as an active community centered around teaching the art of investing more than anything else. Like Ravikant says, “We write down the guidelines on how to invest — the stuff that can be taught — on one sheet of paper.” The core is the learning that happens around live deals with discussions among the partners, Spearhead participants and alumni.
The impact of rolling funds
Rolling funds, which also are the brainchild of Ravikant, have opened up VC to first time and solo practitioners. So, this recent $100 million fund offering up the additional $5 million to high performers in the Spearhead program makes sense.
How are the founders doing so far?
Founders in Spearhead have started companies worth over $22B combined, including 8 unicorns. Some highlights and the founders behind them:
- Peter Reinhardt. Segment was acquired by Twilio for $3.2B
- Laura Behrens Wu. Shippo raised $58M including USV and Bessemer
- Guillermo Rauch. Vercel raised $21M including Accel and CRV
- Max Hodak. Neuralink is developing brain-machine interfaces
- Prasanna Sankar. Rippling raised $197M including Founders Fund