Refactor Capital, which solo capitalist Zal Bilimoria leads, has closed the $50 million Fund 4. With about 90% of capital raised from existing investors, Refactor’s fourth fund will look to lead pre-seed and seed investments in bio, climate, and other hard tech startups.
With this fourth fund, Refactor plans to invest in 20-25 companies over the next three years. Since its 2016 launch, Refactor has invested in over 100 companies, including four unicorns to date, like Solugen and Astranis, and startups working on novel battery technologies, cancer therapies, IVF advancements, and innovations in the $5 trillion chemicals industry.
Solugen has raised over $600 million of capital to date and last week, the company announced a conditional commitment of over $200 million from the Department of Energy Loan Programs Office (LPO) to build their next Solugen Bioforge in Minnesota.
Before founding Refactor, Bilimoria was a partner at Andreessen Horowitz, where he oversaw the launch of a16z’s first Bio Fund in 2015. Before entering the VC world, Bilimoria spent a decade launching new products at major tech companies, including Google, Netflix, LinkedIn, and Microsoft, and was also the founder of a consumer mobile startup.
KEY QUOTES:
“I’m excited to continue backing founders solving hard but not impossible problems in an effort to create a better future for society. Being a solo capitalist allows me to move fast, build trust quickly, and work closely with founders reshaping industries. Investment decisions are at my sole discretion, allowing me to make decisions in a matter of days — not weeks or months. Founders have me on speed dial and receive all my attention along with Refactor’s $1-2M investment.” The term “refactor” comes from computer science and refers to making code more efficient. Here, Bilimoria applies the term to startups transforming their respective industries.”
– Zal Bilimoria, founder of Refactor
“Having Zal as an investor has been a game-changer for Solugen, both in our early days and now. He believed in us and our mission to decarbonize the chemicals industry from the start, and has offered so much hands-on support beyond just writing a check. That’s why I asked him to join our board. Whenever I call him, he picks up. It’s rare to find an investor who’s a true partner like Zal.”
– Gaurab Chakrabarti, co-founder and CEO of Solugen, a Texas based startup manufacturing chemicals using biology
“With less than fifteen percent of venture firms making it to a fourth fund, Zal has cracked the code to running a successful firm. His consistency and strategy of raising the same sized fund every few years and building close relationships with his founders has proven to work, and that’s why we continue to invest in him and Refactor.”
– Kevin Irwin, CIO of Knollwood Investment Advisory
