Asymmetric Capital Partners Anticipates a Surge in Startup Creation

Asymmetric Capital Partners, an early seed-stage investor, is preparing for a new wave of startup creation. Co-founder Rob Biederman predicts a surge of new startups later this year and in 2024. The firm, which has professionalized the early seed investing market, raised its first fund of $105 million in 2021 and has since invested more than half of its fund.

Asymmetric Capital Partners is spread across New York, Boston, and San Francisco. The firm has made significant investments in 18 companies with larger checks of more than $1 million and in another 43 portfolio companies with smaller checks between $100,000 and $150,000.

The firm’s entrance into the market coincided with a growth in seed funding in 2021 and the first half of 2022. However, as Series A funding has become more challenging, more companies are seeking seed funding. Biederman predicts that as funding becomes tougher, many employees will reconsider their career choices, potentially leading to the creation of new high-quality companies.

Asymmetric Capital Partners invests pre-revenue, pre-traction, and sometimes even before a founder has an idea. Biederman believes that the market overvalues traction and undervalues people. The firm is willing to compromise on traction but will never compromise on the quality of people.

Biederman also highlighted several of the firm’s portfolio companies, including EvolutionIQ, an AI-assisted insurance claim compensation assessor; UpSmith, an upscaling and retraining platform for workers; and Miga, a remote patient heart health monitoring service that partners with primary care providers.

Despite the hype around AI, Asymmetric Capital Partners is not overly focused on AI. Instead, the firm aims to find software companies that create value for their customers.

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