California-based Fusion Fund, a venture capital firm which supports early-stage startups and entrepreneurs is raising a massive $85 million fresh funding. The company through its website says that they will back the firms who are using innovative tech to create changes.
Lu Zhang and Homan Yuen, the duo who graduated from Stanford University felt that there aren't many VC firms who are supporting the tech companies and felt that the reason was that there weren't VC firms who had the technical experiences.
They want to back the firms who are the potential massive startups who will bring disruptive changes using their extensive technical expertise.
“We noticed there weren’t many venture capitalists focusing on technology companies and actually have technical backgrounds. We thought, that’s a good opportunity to help early-stage companies that need different help, and advice, and connections,” said Yuen.
Both the founders have done pretty well in their career. After selling their previous companies the two were wondering what lies ahead of them. The two discussed the idea which materialized more when Zhang bagged a $17 million funding.
Fusion Fund will support the technical founders whose companies are working out in solving some big real-world problems. They will support them by providing funding of $500,000 to $1 million.
“We’re not funding science products, or expedition missions, we want clear vision in building a business on the technical advantages.” Part of our thesis is, over the last five to ten years, we saw a lot of investment in business model innovation. We decided it was time to flip back to tech and infrastructure investing,” said Yuen.
It will be interesting to find out the companies who can be benefited from Fusion Funds.