OpenAI alumni discreetly invest from new potential $100M fund.
Image Credits:Bryce Durbin / TechCrunch
New Fund Zero Shot Hits Milestone with $100 Million Goal
A new venture capital fund called Zero Shot, closely linked to OpenAI, has successfully completed its initial closing, achieving its first milestone towards a $100 million target, as revealed by the founders in an exclusive interview with TechCrunch. This fund marks the entry of several experienced professionals from OpenAI into the venture capital space, an endeavor that happened quite unexpectedly.
Founding Team of Zero Shot
Zero Shot is co-founded by a team of individuals with significant expertise in AI, particularly from their time at OpenAI. The founding partners include:
- Evan Morikawa: Former head of applied engineering, involved in the launches of DALL·E and ChatGPT, now working at robotics startup Generalist.
- Andrew Mayne: OpenAI’s first prompt engineer, recognized for hosting The OpenAI podcast and founder of Interdimensional, an AI deployment consultancy.
- Shawn Jain: An engineer and former researcher at OpenAI, who ventured into VC and founded his own GenAI startup, Synthefy.
They are joined by Kelly Kovacs, who previously served as a founding partner at 01A, and Brett Rounsaville, who has experience from Twitter and Disney and currently serves as CEO at Mayne’s Interdimensional.
Longstanding Relationships and Insights
The founders share a strong bond, having collaborated at OpenAI during its formative years. They have remained connected even after their departure from the company, often being approached for consultation regarding emerging AI technologies. This trend sparked Mayne’s initiative to establish his consultancy firm.
As they discussed their experiences, they recognized substantial gaps in the market between the proliferating AI startups and the actual needs of the industry. This realization led them to form their own venture capital fund, leveraging their expertise and access to exceptional talent.
Fundraising and Early Investments
Following initial discussions with institutional investors and family offices, Zero Shot secured its first $20 million. The founders aim to reach an ultimate goal of $100 million for the fund. They have already begun making investments, with notable contributions including:
- Worktrace AI: Founded by Angela Jiang, a former OpenAI product manager, this startup is developing an AI-driven management software aimed at automating enterprise tasks. Worktrace AI successfully raised a $10 million seed round with backing from influential industry figures.
- Foundry Robotics: A venture focused on next-generation, AI-enhanced factory robotics, which recently closed a $13.5 million seed round led by Khosla Ventures.
- A third, undisclosed startup still in stealth mode.
Strategic Insights: What to Avoid in AI
With a clear understanding of the AI landscape, Zero Shot’s founders have developed criteria for both investment and avoidance. They believe their insights enable them to make informed decisions about which startups to support while identifying those to bypass.
Mayne, for instance, is skeptical about many variations of vibe coding. He believes that once model creators maximize their coding expertise, subscriptions for such platforms will swiftly become redundant.
Morikawa has voiced concerns regarding “ergo-centric video data companies” in the robotics sector, stating that the potential for transferring embodiment training data into functioning models is far-fetched at this point in time.
He elaborates, asserting, “There’s a lot of hoping and praying that research will successfully bridge the embodiment gap, but that’s nowhere near possible.”
Additionally, Mayne remains doubtful about startups engaged in creating “digital twins,” after finding that traditional LLM models could perform just as effectively for several applications.
Experienced Advisors Join the Team
Further strengthening the fund’s capabilities, Zero Shot has enlisted a roster of reputable advisors who will receive a share of the carried interest generated by the fund. Among them are:
- Diane Yoon: Former head of people at OpenAI.
- Steve Dowling: Former communications head at OpenAI and Apple.
- Luke Miller: Former product leader at OpenAI.
These advisors bring a wealth of experience and insights, enhancing Zero Shot’s potential to identify and foster impactful AI innovations.
Conclusion: A Bright Future Ahead
As Zero Shot forges ahead, the founders aim to leverage their deep industry knowledge and extensive networks to identify promising AI startups that align with market needs. With their initial $20 million secured and a robust investment strategy in place, the team is well-positioned to navigate the complexities of AI venture capital.
As they continue to identify market gaps and pursue strategic investments, Zero Shot stands at the forefront of AI innovation and entrepreneurial growth, making a noteworthy impact in the venture capital landscape.
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