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chaotic.capital
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Subscription Amount
$10,000+ Quarterly
Subscription Period
4-16 Quarters
Management Fee
1.5% per year over 10 years
Carry
20%
Admin Fee
0.15% per year over 10 years
Starting Q1 2025, this fund will transition onto updated Rolling Fund admin fee pricing terms. See the Investment Details section for more.
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Note from Julie Fredrickson
About chaotic.capital
The Team
Julie Fredrickson
Serial entrepreneur who has started three (and exited two) companies, including Coutorture, PlayAPI, and Stowaway Cosmetics.
Venture Partners
In addition to Julie, both Alex Miller & Jacob Brody will be supporting chaotic as the first two Venture Partners. Alex is an early stage operator who has built and run businesses from 2-350 people and 0 to tens of millions in revenue. Jacob is a serial entrepreneur and investor. He is the co-founder & CEO of Accomplish Health, a virtual metabolic health clinic treating the underlying causes of obesity.
Track Record
Over the last 10 years, our general partner & venture partners have invested more than $4 million into >40 angel/early stage venture investments and returned >3.2X invested capital net of fees with a meaningful portion of their portfolios still remaining (>6X MOIC).
Partner Portfolio Investments Include:
- Triplelift (85x Return on $1.5B Acq by Vista Equity Partners)
- Stack Overflow (40x Return on $1.8B Acq. by Prosus)
- Easypost (25x Return via secondary with Co-investors include Y-Combinator, GV, Ram Shiram)
- Trello (8x Return on $425M Acq. By Atlassian)
- Active portfolio investments include Tala, Button, Flieber, Ethyca, and others with co-investors including Sequoia Capital, Andreesen Horowitz, First Round Capital, IA Ventures, Data Collective, Founder Collective, Union Square Ventures, Addition (Lee Fixel), GGV Capital and Social Capital.
- Growth stage portfolio investments include Clover Health (2.5X Via IPO - Nasdaq: CLOV), mParticle, and Sure Insurance.
About The Fund
Our Philosophy
chaotic.capital invests in ideas that adapt humanity to complexity. We capitalize on chaos.
Investment Thesis
The world is getting more complicated. chaos and complexity present both an opportunity and a threat.
But it's a mistake to try and control complex systems, when humans aren't that good at predicting second, third, or even fourth order effects. Rather we need to learn how to adapt.
With chaotic.capital we're identifying, investing in, and supporting companies that adapt our lives and systems to the opportunities that chaos brings.
The Areas We Invest In
To help prepare humanity for chaos, we look for companies that are impact society in one of three ways; at the individual, organizational and finally systems level.
- Personal Flexibility is critical when it’s harder to make long term lifestyle decisions (housing, health, children) - how do we allow people to make those decisions without anchoring themselves to specific place or time horizons that limit optionality. Businesses like healthcare services, marketplaces, preparedness, personal safety, exchanges, and alternative credentials & education.
- Organizational Agility allows businesses to better adapt to rapidly changing landscapes, so we invest in software and tooling that provides leverage for small teams to have a bigger impact or bigger teams to act more discretely and independently. Businesses like software as a service, healthcare infrastructure, cloud infrastructure, collaboration & coordination software, DAOs (decentralized autonomous organizations), automation, memetic and organizational aids.
- System Sustainability enables people and organizations to prepare and prevent existential risks. There are many growth mechanisms and financial engineering techniques that can lead to profit but are extractive in nature. We look for businesses that transform previously extractive business models to help maintain the value of the end good or service that is delivered. With climate change and its associated impacts, natural resource constraints, human resource constrains, and other challenges imperiling humanity, there's a massive opportunity and ROI for companies that are mitigating the chaos from it and helping us live sustainably in a changed world. Businesses like mobility, health/life/P&C insurance, clean energy, synthetic biology, and the care economy.
About Us
Deal Flow
Our deal flow comes through several channels, including
- Inbound flow from founders, co-investors & journalists based on our public writings and brand. For example, through her writings and interactions around the chaotic.capital thesis, Julie is approached daily by founders seeking advice & capital, leading to joining two as-yet-announced seed investments in otherwise oversubscribed rounds. Her visibility as a thought leader on Twitter where she has over 25,000 followers including top venture capitalists and technology writers, gives her early access to trends, emerging companies and operators. She cultivates trust and psychological safety among our peers through writing on her personal blog where she releases an essay a day and has done so consistently for 430+ days and counting. Her most current investment Squads came about when the cofounder direct messaged her for product advice. After 3 months of advising the team our allocation on the cap table was secured even as the round became heated.
- Referrals and syndication from top tier first check investors like Scott & Cyan Banister, Jason Calacanis & LAUNCH Fund, Cantos Ventures, Vast Ventures, Bullpen Capital, Boldstart Ventures, Kindred Ventures and others. For example, Recora lead investor and 2048 partner Paul Sethi introduced Jacob Brody to Abhishek Chandra, Co-Founder and CEO at cardiac rehab startup Recora Health. Abhishek was previously Co-Founder and CTO at mental health unicorn Spring Health. After making a number of partner and recruiting intros Abhishek offered an allocation despite significant demand for his upcoming A round.
- First look access to new ventures from company alumni. While working at Stack Overflow, Alex was offered early allocations in several companies to be created by SO employees, including the Trello A round which returned 8.5x in only three years. We also invested in another former SO leader’s seed round (still in stealth).
- Companies we find and use through our daily operator work. For example, Julie was an early user of customer.io at her previous startup where she and Alex met Colin and ended up investing.
Investment Process
chaotic.capital aims will start by deploying ~10 pre-seed and seed stage checks annually with an average investment size of $100K, along with follow-on checks aimed at increasing our ownership in the highest performing initial investments Seed and A rounds.
Our goal is to acquire an ownership of 1% in our initial checks, and building to 2% ownership by the A round in our biggest successes. For later follow on rounds, we will use SPVs with our fund LPs having first priority on allocations.
Our early conviction and sourcing on founders means we will be on of the first investors (if not the first) that they are working with, giving us unique insight into their process while establishing a deep relationship with them and helping generate progress and momentum for their rounds.
We produce standard deal memos for all the deals we participate in, which are available not just to our own LPs, but also to the founders to share with other potential investors.
Adding Value
We support founders in two critical ways.
First, we are the most supportive and psychologically safe investors on their cap table. We will let founders know no idea is too crazy or new or unfiltered or weird to bring to us. We will not judge or nitpick. We help founders explore failure points and mitigate. We will provide the psychological safety that breeds collaborative creativity. No need for preparing a pitch to appeal to our biases.
Second, we bring deep operational experience and are excited to get our hands dirty with them. Whether it's marketing and communications strategy (Julie), growth/regulatory/fundraising strategy (Brody), go-to-market and operational issues (Alex), or team and co-founder management.
have more questions?
email [email protected] and we'll answer anything you have
Julie
Investment Details
Subscription Start Date
January 1, 2024
Minimum Quarterly Subscription
$10,000
Minimum Subscription Period
4 Quarters
Management Fee
Investors pay management fees of 1.5% per year for the first 10 years.
Management fees are taken as a percentage of the total committed capital. The total management fee is paid out quarterly over the first
four years of the fund's life.
Carry
Twenty percent (20%)
Admin Fee
0.15% per year over 10 years
Starting Q1 2025, this Rolling Fund will transition onto updated Rolling Fund pricing terms. Under these new pricing terms, each new quarterly fund in the Rolling Fund Program will pay an annualized rate of $2.5k + 0.2% of contributed capital over 10 years.
Fees for each quarterly fund in the Rolling Fund Program will vary based on each quarterly fund’s capital contributions since the fee includes a flat fee component. The last quarterly fund in this Rolling Fund Program closed $191k in contributed capital. Learn more about how to estimate your commitment’s fees at our help center.
Fees for each quarterly fund in the Rolling Fund Program will vary based on each quarterly fund’s capital contributions since the fee includes a flat fee component. The last quarterly fund in this Rolling Fund Program closed $191k in contributed capital. Learn more about how to estimate your commitment’s fees at our help center.
Fund Lead Commitment
Julie Fredrickson's personal subscription per quarter will be at least 10% of each quarterly fund's total committed capital in total. Julie Fredrickson will satisfy their GP commitment in part by waiving a portion of management fees otherwise owed to them by the fund.
Special Disclosure
The fund may invest up to 20% of committed capital into crypto assets
Investor FAQ
How is this program different from venture fund investing?
How do subscriptions work?
How do management and admin fees work?
How does carried interest work?
How do distributions work?
Will a Limited Partner (LP) participate in all investments made by the funds offered through this Program?
Will an LP's percentage ownership of quarterly funds always be the same?
Are LPs guaranteed access to chaotic.capital's future funds?
How are subscriptions funded?
How does changing or canceling a subscription work?
Who manages these funds?
Do funds in this Program have minimum or maximum investment sizes?
What happens if funds in this Program do not invest their total capital each quarter?
When will LPs learn about companies the funds invested in?
Can LPs opt out of specific deals?
Can LPs sell their investment in the fund?
Can LPs redeem their interests in the fund?
When will funds launched under this Program begin deploying capital?
How do I receive tax documents from this Program?
Unanswered questions? Contact AngelList
The performance of past deals or a lead investors' track record is not a guarantee of future returns. Venture capital fund investments are inherently risky and illiquid. Such investments involve a high degree of risk and are suitable only for sophisticated and accredited investors.
AngelList and its affiliates do not provide investment advice to investors. The information on this page should not be relied upon as research, investment advice or a recommendation of any kind. Information on this page is qualified in its entirety by the fund's Limited Partnership Agreement, Private Placement Memorandum and Subscription Agreement, which should be reviewed carefully prior to making an investment decision. Please see these documents for full details regarding risks, minimum investment, fees and expenses. The fund lead and the fund's investment advisor have the right to waive or charge additional carry to certain investors. The fund's legal name may be different from the name used above.
This fund may accept new investors after the fund undergoes a valuation update. Certain potential investors in the fund may then have access to materially different information concerning fund value at the time of their investment.
Current or future portfolio companies in this fund may use AngelList's recruiting platform and may pay an affiliate of the fund's investment adviser for premium recruiting tools and services. This may create a potential conflict of interest for the investment adviser, which you will consent to by subscribing to the fund.
Please read the disclosures in full here.
Apply To Subscribe
Subscription Amount
$10,000+ Quarterly
Subscription Period
4-16 Quarters
Management Fee
1.5% per year over 10 years
Carry
20%
Admin Fee
0.15% per year over 10 years
Starting Q1 2025, this fund will transition onto updated Rolling Fund admin fee pricing terms. See the Investment Details section for more.
Invest Account
Select invest account