Precursor Ventures’ First Hire Spins Out to Launch Her Own Venture Firm

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A Leap in the Right Direction?

Sydney Thomas, the first hire at Precursor Ventures, a seed and early-stage focused fund that backs first-time founders, is starting her own venture firm. This move may seem like a leap of faith in an environment where institutionally backed investors are warning emerging fund managers will struggle to raise debut funds due to LP freeze-ups. However, Thomas disagrees with this sentiment.

"I think it’s crazy to start a fund in any environment," Thomas told TechCrunch. "I haven’t paid a lot of attention to a lot of the discussions because I learned recently that early-stage markets have zero correlation to the stock market more generally; and the over-indexing, or over-correction that is happening in the stock market is not actually reasonable for early-stage investors."

Focusing on a Gap in the Market

Thomas declined to share what type of fund she’s raising – if it’s a 506(c) or a 506(b) – or what her average check size could look like. Her firm doesn’t yet have a website or a name, but she’ll spend the next few months heading into builder mode before opening up the inbox for investments.

While her new gig is clearly still very early stage, Thomas has been focusing on a gap in the market that she’s passionate about addressing. She believes that there is a lack of investment opportunities in the pre-seed and seed stages, which are critical periods for startups to gain traction and scale.

A New Era of Venture Capital

Thomas will be joining the ranks of other female venture capitalists who have started their own firms in recent years. This trend represents a shift towards greater diversity and inclusion in the venture capital industry, which has traditionally been dominated by male investors.

Despite progress, roles within venture have grown increasingly vague over time. At any given fund, there can be principals, investors, partners, investing principal partners, and senior associate investors. Depending on the fund, each person could just go under the guise of "partner" and call it a day. Thomas was set to join the partner track at Precursor – she’s been leading deals there for 2 years – but she’s jumping ahead to start a career with her own investment autonomy and decision-making authority.

A New Chapter for Sydney Thomas

Thomas will transition to a venture partner role at Precursor. She said that the role means she can stick to her recurring meetings with founders but declined to comment if she will be staying on Precursor’s payroll or what her financial relationship with the firm will look like.

"Once I started [investing], in very much Virgo energy, I could not stop thinking about it," Thomas said during the interview. "So, I decided to jump into it."

The Future of Venture Capital

The move by Sydney Thomas represents a significant shift in the venture capital industry. With more women starting their own firms and investing in startups, there is a growing recognition that diversity and inclusion are essential for success.

As the industry continues to evolve, it will be interesting to see how Thomas’s new firm approaches investment decisions and what impact she will have on the startup ecosystem.

Key Takeaways

Sydney Thomas is leaving Precursor Ventures to start her own venture firm.
She believes that there is a lack of investment opportunities in the pre-seed and seed stages, which are critical periods for startups to gain traction and scale.
Her new firm will focus on investing in early-stage companies with high growth potential.
Thomas’s move represents a shift towards greater diversity and inclusion in the venture capital industry.

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About the Author

Natasha Mascarenhas is a senior reporter at TechCrunch, covering early stage startups and venture capital trends. She has a strong track record of breaking news and providing insightful analysis on the tech industry.

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