Refactor is a venture capital firm focused on early-stage investments in companies in bio, climate, and hard tech innovation. Pulse 2.0 interviewed Refactor Solo Capitalist Zal Bilimoria to learn more about the firm.
Zal Bilimoria’s Background
What is Zal Bilimoria’s background? Bilimoria said:
“My background lies heavily in hardware, software, and coding. I grew up building computers for my dad’s business and decided to focus on the fundamentals of being a founder by studying business at the University of Pennsylvania.”
“Microsoft recruited me during their visit to Penn, which launched my ten-year career of successfully developing new product categories at Microsoft, Google, Netflix, and LinkedIn. Eventually, this journey led me to become a partner at Andreessen Horowitz, where I played a role in launching their first Bio Fund in 2015.”
“During my time at a16z, I developed an interest in the intersection of software development and healthcare, which prompted me to take on something that nobody else had done yet at a16z. My focus started with healthcare and expanded to computational biology, synthetic biology, and climate tech.”
“Every few years, I’m reinventing myself to stay fresh on planetary and human health needs, not only for my own VC firm but also for the benefit of my investors and founders.”
Evolution Of Refactor’s Thesis
How has Refactor’s thesis evolved over time? Bilimoria noted:
“Refactor Capital initially focused on investing in early-stage companies operating in the biology and health sectors. Our early investments included digital health startups and companies at the intersection of computational and synthetic biology. Over time, Refactor’s thesis has expanded to include climate tech and other hard tech sectors, reflecting a broader commitment to addressing significant societal challenges through innovative technologies.”
Favorite Memory
What has been Bilimoria’s favorite memory working for your firm so far? Bilimoria reflected:
“Successfully closing and announcing this 4th fund is my favorite memory. It’s been a long journey building Refactor over the last decade – our brand, our portfolio, the hard work with our companies, and to get here is a huge milestone. Less than 15% of venture firms get to a 4th fund, so very honored to have the support of our investors and founders.”
Significant Milestones
What have been some of your firm’s most significant milestones? Bilimoria cited:
“Most recently, we announced a fourth $50 million fund, which closed in under 90 days. With this fund, I plan to continue to write lead checks for 20-25 seed-stage companies in bio, climate, and hard tech over the next three years.”
“Refactor currently has over 100 companies in its portfolio, including four unicorns.”
Investment Success Stories
After asking Bilimoria about investment success stories, he highlighted:
“My leading companies, Solugen and Astranis – both unicorns – are doing extremely well and are on a trajectory to change their respective fields.”
“Recently, Solugen announced a $200M+ loan from the Department of Energy, the same program that backed Tesla in its early years.”
Industry Focus
What are some of the industries that your firm is focused on? Bilimoria noted:
“Refactor is focused on early-stage investments in companies in bio, climate, and hard tech innovation that enhance planetary and human health.”
Differentiation From Other Firms
What differentiates Refactor from other firms? Bilimoria emphasized:
“Unlike traditional VC firms with committees, being a solo GP gives me the ability to make lightning fast decisions – often producing term sheets in 3 weeks or less. Mostly, I build trust quickly and work closely with the founders I’m investing in – giving them my undivided attention and evangelism. Founders will have me on speed dial and I’m constantly thinking about their success.”
“As a seasoned operator with decades of experience at big tech companies, I understand founder challenges, having faced them myself.”
“Building a commercializable product with little capital is extremely difficult at the seed-stage, which is why I pick up the tab for mental health services, not only for the founders I work with, but their employees as well.”
Challenges Faced
What are some of the challenges you faced while working at the firm? Bilimoria acknowledged:
“Managing the full responsibilities of decision making and fundraising solo can be challenging. Without partners to consult, every investment decision rests solely on my shoulders. However, being a solo GP means I can make lightning fast decisions and thankfully I have a great support network of advisors to reach out to when/if I need guidance.”
Future Firm Goals
What are some of your firm’s future goals? Bilimoria pointed out:
“1.) Continuing to lead pre-seed and seed investments into bio, climate, and hard tech
2.) Maintain Refactor’s track record of successful investments to support companies enhancing planetary and human health.”
Additional Thoughts
Any other topics to discuss? Bilimoria concluded:
“Some advice for other solo GPS – lean into your strength as an individual. Rather than spending time on bureaucracy, spend your time on founders.”
