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Ex-Google employee Hunter Walk and ex-Twitter Satya Patel are launching a new $35 million venture fund called Homebrew on Wednesday that will focus on doing seed stage investments.
Within Silicon Valley, Walk and Patel’s departures from their companies was big news back in February, when it was rumored that they were starting a venture capital firm. Walk was most recently head of product management at YouTube with Google, and was well known as an active angel investor. Patel left Twitter in June 2012 after serving as the company’s VP of product, and he was previously a partner with Battery Ventures and a product manager at Google working on AdSense.
With Homebrew, the two will invest smaller amounts of money — between $250,000 and $800,000 — in seed rounds. They said they’ll prefer to lead those rounds, along with participation from other noted firms and investors, and they’ll reserve capital for follow-on rounds in a Series A or more.
The two described the firm’s investment focus, and the types of deals they’ll look for:
“Our thematic focus is on the Bottom Up Economy – products and platforms which are helping SMBs, makers, entertainers, etc compete with the biggest corporations. How teams of 5, 50 or 500 are driving innovation as software eats the world. The transformation from a Top Down world to one that’s Bottom Up. Investment verticals include marketplaces, SMB SaaS, collab economy, direct to consumer, software as API. Homebrew has made several investments (closed the fund in April). Great group of advisors incl founders/execs at relevant companies: twilio, airbnb, facebook, uber, box, etc.”
Homebrew said it will do fewer than 10 deals a year in hopes of providing more personal guidance to the founders, and it will have San Francisco co-working space for funded companies and a few others.