According to GeekWire, Seattle venture firm Founders’ Co-op has raised $50 million for its sixth fund, matching the size of its previous 2021 fund. The firm plans to invest in approximately 30 companies, with 80-90% of capital going to Pacific Northwest founders at pre-product or pre-revenue stages. Average initial checks will range from $1 million to $1.5 million, targeting 10% ownership at first investment. Founding managing partner Chris DeVore emphasized that the firm’s strategy remains focused on being “the best first-check investor” in the region rather than competing with larger later-stage funds. The firm is now based inside Foundations, the Seattle entrepreneur hub launched by partner Aviel Ginzburg following Techstars Seattle’s closure last year.
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Why Regional Focus Matters in Venture Capital
Founders’ Co-op’s consistent $50 million fund size and regional concentration represent a deliberate counter-trend in venture capital, where many firms are pursuing larger funds and geographic diversification. As Chris DeVore noted in his blog post announcing the fund, “your fund size is your strategy.” This disciplined approach allows the firm to maintain its identity as an early-stage specialist while avoiding the pressure to deploy larger amounts that could distort their investment thesis. The Pacific Northwest has historically been underserved by venture capital compared to Silicon Valley, creating both opportunity and responsibility for local firms to nurture homegrown talent.
The Physical Hub Advantage in a Digital World
The firm’s location within Foundations represents a strategic advantage that extends beyond mere convenience. In an era where remote work has become commonplace, physical gathering spaces for entrepreneurs serve as critical innovation catalysts. Foundations has quickly become what DeVore describes as “Aviel’s love-letter to the local founder community,” creating serendipitous connections and deal flow that digital platforms cannot replicate. This physical presence matters particularly for early-stage investing, where pattern recognition and personal relationships significantly influence investment decisions. The closure of Techstars Seattle created a vacuum that Foundations appears to be filling effectively.
Pacific Northwest’s Growing Tech Ecosystem
Founders’ Co-op’s bullish stance on Seattle comes amid significant momentum for the broader Pacific Northwest tech scene. The region has demonstrated its capacity to produce billion-dollar companies, with Founders’ Co-op’s own portfolio including Remitly, Outreach, and Auth0. Recent investments in companies like Aarden AI, Logic, and RowZero suggest the firm sees particular promise in AI and productivity software. With other Seattle-area firms including Ascend, Flying Fish, and Madrona also raising new funds, the region appears poised for increased startup activity despite broader venture capital headwinds. The concentration of technical talent from Amazon, Microsoft, and other tech giants provides a durable advantage for founders building in the area.
People Over Hype Cycles
DeVore’s statement that “no moment in the hype cycle — up to and including the current LLM wave — matters more than the people we back and the problems they choose to solve” reveals a fundamental philosophy that has served the firm well through multiple technology cycles. While artificial intelligence dominates current venture conversations, Founders’ Co-op’s approach of backing ambitious technical founders regardless of vertical suggests they believe durable companies emerge from founder-market fit rather than chasing trends. This people-first approach aligns with their stated focus on “ambitious technical founding teams” and has proven effective across their 15-year history.
What’s Next for Pacific Northwest Startups
The continued success of specialized regional funds like Founders’ Co-op suggests we may see more geographically-focused venture firms emerge outside traditional tech hubs. Their model of providing the crucial first check then stepping aside for larger, later-stage investors creates a complementary ecosystem rather than competitive tension. For Pacific Northwest founders, this means continued access to early capital from investors who understand the local landscape intimately. The firm’s track record of identifying technical founders before product-market fit suggests they’re betting on the region’s next generation of billion-dollar companies currently taking shape in Seattle’s coworking spaces and university labs.
