Thrive Capital has invested in additional than a dozen different VC companies from its progress fund

As of final fall, Thrive had invested in no less than 17 enterprise capital companies from its $3.3 billion eighth growth-stage fund, based on emails between Thrive’s investor relations crew and the California Public Staff’ Retirement System, one of many restricted companions from its most up-to-date fundraise, that have been obtained by Fortune by way of a Freedom of Data Act request. Lots of the VC companies Thrive has backed are new companies, launched in the previous few years by rising managers together with Los Alamos Capital, a fund began by Scale AI CEO Alexandr Wang; Not Boring Capital, the VC fund of e-newsletter author Packy McCormick; and Sheva VC, an Israeli VC agency based by investor David Citron and Omri Casspi, a former NBA participant with the Memphis Grizzlies, the place Kushner is a minority proprietor.

Thrive declined to remark, so it’s unclear the complete extent to which Thrive has invested in new VCs (sometimes called rising managers) over time, or the way it suits into the agency’s broader funding technique. However the investments present a uncommon take a look at a little-discussed however vital facet of the VC trade, the place enterprise companies incorporate different VCs into their portfolio for causes that embody serving to with deal movement, giving a a vote of confidence for sure folks of their community, or as an act of goodwill to a departing associate.

A few of these sorts of investments could find yourself changing into moderately profitable. Thrive Capital itself, which now has $14 billion in property beneath administration, based on SEC filings, was seeded by Normal Catalyst and the agency’s cofounder, Joel Cutler. A extensive swath of top-performing enterprise capital funds available in the market are run by rising managers. However with out a observe file, there may be additionally a high-risk for failure with these funds.

It’s sometimes solely the billion-dollar-plus enterprise capital companies that may again different traders utilizing their pre-existing funds, based on Kyle Stanford, an analyst at PitchBook. That’s due to the government-mandated threshold on nonqualified investments, the place enterprise capital funds will not be permitted to allocate greater than 20% to issues like fund of fund investments, debt, or secondaries (although they may increase particular funds to take action). It’ll additionally rely on what a enterprise agency’s agreements are with their very own traders, known as restricted companions.

However the main purpose Stanford sees enterprise companies making investments in different VCs is for deal movement in earlier levels. “You have a source of deals that are coming through, you have an idea of which [companies] are performing well. You have that extra data that you can [use to go] and make a better decision and maybe invest down the road.”

Thrive Capital is reportedly making ready to lift its subsequent progress fund. Originally of final 12 months, Thrive repurchased the stake Goldman Sachs held within the agency, then resold it to executives together with Bob Iger, Henry Kravis, and Jorge Paulo Lemann.

In response to a request for remark, a CalPERS spokesperson stated that the pension fund “does not discuss its investment strategy or the operations of its investment partners.”