Felix Capital, a five-year-old venture firm that has invested in companies such as Goop, Highsnobiety, and Peleton, says it has raised an additional $300 million to continue its strategy of investing in digital lifestyle brands.
The new funds will boost Felix’s assets under management to $600 million, says Frederic Court, founder and managing partner. “We now have some flexibility to add a few later-stage companies,” he says, noting that Felix will remain focused on “plus or minus series A” companies, or those often raising their first real venture capital.
The growth of Felix underscores just how far venture investing has journeyed from Silicon Valley, which canonized the funding mechanism. Just a few decades ago, many of the companies in Felix’s portfolio, such as jewelry maker Mejuri or stationery brand Papier, would not have qualified for venture capital, which favored fast-growing (and risky) biotech or information tech companies capable of huge returns to private investors through a public offering or a blockbuster merger.
Court says Felix doesn’t set out to invest in deep tech—he acknowledges that there are plenty of firms with more extensive software and computing expertise—but says he seeks companies that are using technology to build communities and brands or to operate their businesses more efficiently. He is also quick to point out that some of Felix’s portfolio companies, such as streetwear blog Highsnobiety, weren’t even seeking investors when Felix proactively reached out to them. “Many of the companies we are interested in should follow a path of profitable growth,” he says. He adds: “If you have people coming to you,” instead of paying for customer acquisition as many startups do, “that changes the unit economics. And so we are very drawn to those communities that have been built authentically.”
As part of its fundraising announcement, Felix also announced that former Farfetch operating chief Andrew Robb will join the firm as an advisor. While he was a general partner at Advent Venture Partners, Court invested the first capital in Farfetch, the luxury retailing platform. (Farfetch went public in 2018; today it is trading below its IPO price.)
“We love passion as a differentiator” in founders, Court says. “We talk about businesses combining the magic and the logic.”