Necessary Ventures

Necessary Ventures is a San Francisco-based venture capital firm that aligns its investment strategy with the principle of "investing in what the world needs." This ethos guides their focus on companies developing foundational technologies and solutions in critical sectors. The firm typically targets early-stage opportunities, primarily participating in seed and Series A rounds, with a notable propensity to follow on in subsequent funding stages for their portfolio companies. Their investment scope appears to lean heavily into deep technology, including advanced manufacturing, space infrastructure, and artificial intelligence, reflecting a commitment to supporting ventures that address complex, real-world challenges.

The firm's portfolio demonstrates a clear preference for capital-intensive, high-impact industries. For instance, Necessary Ventures has participated in the seed rounds of companies like Varda Space Industries, which raised $9 million, and Atomic Semi, which secured $15 million in its seed funding. They also backed Hadrian, an advanced manufacturing company, in its initial $16 million seed round, and Kumo.ai in its $12 million seed round. These examples highlight their involvement in substantial early-stage rounds, indicating a readiness to support ventures requiring significant initial capital for development and scaling.

While Necessary Ventures does not publicly disclose its typical check sizes, an analysis of their participation in these large seed rounds suggests a specific investment range. Given the multi-million dollar sizes of the seed rounds they've joined, their initial checks are likely in the range of $1 million to $4 million. This estimated range reflects their role as a significant participant in rounds that often involve multiple investors, providing crucial early capital to deep tech startups. Their continued participation in later rounds, such as Hadrian's Series B and C, further underscores their long-term commitment to their portfolio companies.

Overall, Necessary Ventures positions itself as a strategic partner for innovative companies building essential technologies. Their concentrated portfolio, with investments in a handful of high-potential deep tech firms, suggests a hands-on approach and a focus on long-term value creation. The firm's commitment to "what the world needs" translates into backing ventures that are poised to make a substantial impact across critical industrial and technological frontiers.