Floating Point Closes Second Fund to Invest in Complex Sectors

Rhea-AI Summary

Floating Point, an early stage VC firm founded by the Oscar Health team, closes a $70 million second fund, managing over $150 million in assets. The firm invests in overlooked sectors, backing expert founders building unique companies like Altana, Commons Clinic, Sun Day, Floodbase, and Wheeler Bio.

Insights

Venture Capital Analyst

The recent announcement by Floating Point about the closing of their $70 million second fund is a noteworthy event in the venture capital landscape. It signals a growing confidence among investors in the firm's ability to identify and nurture early-stage companies in complex sectors. The fact that they now manage over $150 million in assets highlights a substantial increase in their market presence and influence.

Floating Point's strategy to focus on sectors like healthcare, supply chains, climate, defense and manufacturing is particularly interesting. These areas are ripe for innovation but are often neglected by traditional venture strategies due to their inherent complexities and longer maturation periods. By targeting these sectors, Floating Point is positioning itself to capitalize on the next wave of technological advancements that could potentially disrupt legacy industries.

Their portfolio, which includes companies like Altana and Wheeler Bio, suggests a keen eye for transformative technologies and a willingness to support companies with the potential to redefine their respective markets. The success of these companies, such as Altana's significant fundraising achievements, could have a ripple effect on the broader industry, encouraging more investments in overlooked sectors.

Technology Market Analyst

Floating Point's emphasis on backing founders with industry credibility and cutting-edge technology in massive markets that are not well-known to outsiders is a strategic move that could set them apart from competitors. Their approach to underwriting and portfolio concentration may lead to a higher risk profile, but it also offers the potential for outsized returns if their bets on technology integration into legacy industries succeed.

Their involvement in companies that address global challenges—like Altana's AI for global trade, Wheeler Bio's rapid biomanufacturing for therapeutics and Floodbase's flood tracking for climate insurance—demonstrates an alignment with current technological trends and societal needs. This alignment not only serves a market demand but also has the potential to drive significant social impact, which can be an attractive quality for investors looking to contribute to meaningful change.

Moreover, the experienced venture partners associated with Floating Point, including co-founders of DoorDash and Facebook AI Research, provide a robust support system for portfolio companies. This network of technology leaders could be instrumental in guiding these startups through growth challenges, which is a valuable asset for both the firm and its investees.

Healthcare Industry Analyst

The involvement of Floating Point in the healthcare sector, particularly through companies like Commons Clinic and Dandelion, is indicative of the venture capital firm's recognition of the growing demand for innovation in healthcare technology. With the healthcare industry undergoing rapid transformation due to technological advancements, the firm's focus on this sector could yield significant returns.

Investments in healthcare technology, especially those that offer solutions to streamline clinical processes or improve patient outcomes, are becoming increasingly important as the industry seeks to manage rising costs and improve care. Floating Point's active role in supporting companies that address these challenges demonstrates a strategic foresight into the long-term trends shaping the healthcare industry.

Moreover, the involvement of Vin Mitta, M.D., Medical Officer at CMS, as one of the venture partners, underscores the firm's commitment to leveraging industry expertise to inform their investment decisions. This level of expertise is important for understanding the complexities and regulatory challenges of the healthcare market, which can significantly affect the success of their investments in this sector.

Early Stage VC Firm Created by Oscar Health Founding Team Now Manages more than $150 Million in Assets

NEW YORK & BOSTON--(BUSINESS WIRE)-- Floating Point, an early stage venture capital firm investing in complex sectors, today announced the closing of its $70 million second fund. Floating Point looks deep in overlooked sectors to back expert founders building first of their kind companies. Their portfolio includes category-defining companies such as Altana, Commons Clinic, Sun Day, Floodbase, and Wheeler Bio. Floating Point now manages more than $150 million in assets on behalf of a wide range of institutional, private equity, and family office investors including 53 Stations, the venture arm of The Pritzker Organization.

Floating Point was founded in 2021 by John Loser (L) and Eddie Segel (R), who spent the previous fifteen years working together, first as hedge fund investors at Bridgewater, and then on the founding team of Oscar Health (NYSE:OSCR), where they led product, data, and risk management. Floating Point brings this financial and founder mindset to each investment. (Photo: Business Wire)

“Venture needs a new playbook. The most needed areas for innovation — healthcare, supply chains, climate, defense, manufacturing — aren’t a fit for today’s dominant venture strategies,” said Eddie Segel, co-founder and general partner, Floating Point. “We founded Floating Point with the thesis that a new approach is needed to build the most important technology companies of the next decade.”

Floating Point was founded in 2021 by Eddie Segel and John Loser, who spent the previous fifteen years working together, first as hedge fund investors at Bridgewater, and then on the founding team of Oscar Health (NYSE:OSCR), where they led product, data, and risk management. Floating Point brings this financial and founder mindset to each investment.

“The most unique opportunities are born from complexity, expertise, and a willingness to invest where others don’t,” said John Loser, co-founder and general partner, Floating Point. “We look for founders bringing cutting-edge technology and industry credibility to massive markets that outsiders don’t even know exist.”

Floating Point is a team of pioneering technology leaders who know how to win in complex markets, including experienced venture partners who help source and work with its portfolio: Evan Moore, co-founder of DoorDash; Serkan Piantino, co-founder of Facebook AI Research and VP Product at Reddit; Vin Mitta, M.D., Medical Officer at CMS; Jesse Horowitz, CPO at Oscar Health; and Bruce Gottlieb, COO of Flatiron Health.

Floating Point focuses on differentiated underwriting to build a distinctive and concentrated portfolio of founders bringing technology to legacy industries. Some of these companies include Altana, advanced AI for global trade; co-founding Sun Day, a technology-driven car wash rollup; Wheeler Bio, rapid biomanufacturing for therapeutics; Floodbase, flood tracking for climate insurance; TimberEye, timber supply chains; Dandelion, hospital data for clinical AI; Cofactr, semiconductor supply chains; Mevo, Brazil’s e-prescription infrastructure; and Commons Clinic, an orthopedic surgery platform.

"Eddie and John immediately understood the immense potential of our mission to fix globalization by providing a universal map of the global supply chain," said Evan Smith, CEO and co-founder of Altana, which has raised over $160 million from investors including Google Ventures and Activate Capital. "Floating Point has been an invaluable partner as we've grown from a small, pre-revenue startup to now working with many of the world's leading organizations. Their unique expertise as both sophisticated investors and experienced founders has been critical to our success. Since before they invested and in every step of the way since — through all of the highs and lows of the journey — Floating Point has genuinely been my trusted partner. I can't imagine building this company without them by our side."

About Floating Point

Floating Point is a venture capital firm investing in complex sectors to build a distinctive venture portfolio at the intersection of technology and legacy industries. Founded in 2021 by Eddie Segel and John Loser, former investors at the hedge fund Bridgewater turned founding team members of Oscar Health, the firm discovers and backs first of their kind companies in sectors that are often hidden or overlooked. Floating Point manages more than $150 million in assets on behalf of a wide range of institutional, private equity, and family office investors.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240407715414/en/

Media

Kate Gundry

floatingpoint@pluckpr.com

617-797-5174

Source: Floating Point

FAQ

Who founded Floating Point?

Floating Point was founded by Eddie Segel and John Loser, who previously worked together at Bridgewater and the founding team of Oscar Health (NYSE:OSCR).

What is the total amount managed by Floating Point?

Floating Point now manages over $150 million in assets.

Which companies are part of Floating Point's portfolio?

Some companies in Floating Point's portfolio include Altana, Commons Clinic, Sun Day, Floodbase, and Wheeler Bio.

Who are some of the experienced venture partners at Floating Point?

Experienced venture partners at Floating Point include Evan Moore, Serkan Piantino, Vin Mitta, Jesse Horowitz, and Bruce Gottlieb.

What sectors does Floating Point focus on for investment?

Floating Point focuses on sectors such as healthcare, supply chains, climate, defense, and manufacturing.