FailUp Capital Closes $130M Fund

February 2021 • FailUp Capital Team

We are thrilled to announce that FailUp Capital has closed an $130M Fund, backed by Alumni Ventures (av.vc). This milestone marks a defining moment in our mission to back the most ambitious founders in hard tech and deep tech — the scientists, engineers, and builders who are determined to solve problems that most people consider unsolvable.

This Seed Round is not just capital. It is a commitment: a statement that the future belongs to those who have the courage to pursue deep scientific challenges, to fail publicly, learn relentlessly, and build again. FailUp Capital was founded on the belief that the most important companies of the next generation will not emerge from app stores — they will emerge from physics laboratories, materials science departments, and advanced engineering programs across the world.

Why Now, Why Hard Tech

We are living through an inflection point in technology investment. For more than a decade, venture capital has been dominated by software-first, rapid-growth plays: consumer apps, SaaS platforms, and marketplace businesses. These have created enormous value. But the structural problems facing humanity — climate change, energy security, supply chain fragility, semiconductor sovereignty, and health crises — demand more than elegant software. They demand atoms, not just bits.

Hard tech and deep tech represent a different philosophy of company building. These are ventures where the R&D cycle is measured in years rather than sprints, where the barrier to replication is physical law rather than a terms-of-service agreement, and where success means moving the needle on genuinely consequential challenges. Semiconductor fabrication, advanced materials, aerospace propulsion, quantum systems, robotics, synthetic biology — these domains are where FailUp Capital focuses its attention and its capital.

The timing of our Seed Round reflects this moment. Governments worldwide are recognizing the strategic importance of domestic technology capability. Supply chain vulnerabilities exposed by the global pandemic have triggered a reshoring movement across advanced manufacturing. University technology transfer pipelines are more productive than at any point in history. The conditions for deep tech investment have rarely been more favorable.

Alumni Ventures: A Defining Partnership

Our partnership with Alumni Ventures (av.vc) is central to this announcement and to our investment strategy. Alumni Ventures is one of the most prolific venture firms in the United States, with a unique model: mobilizing the alumni networks of elite universities to co-invest in high-potential startups. Their community spans MIT, Harvard, Stanford, Princeton, Yale, and dozens of other leading institutions.

For FailUp Capital, this partnership brings far more than financial backing. It connects us directly to the research ecosystems where breakthrough technologies are born. When a PhD candidate at MIT develops a novel process for carbon capture, or when a materials scientist at Caltech engineers a new class of high-temperature ceramics, our network allows us to see those opportunities at the earliest stage — often before the company has a name, a pitch deck, or a co-founder.

Alumni Ventures' portfolio spans thousands of companies across sectors from biotech to aerospace to enterprise software. Their experience navigating early-stage company building, combined with their alumni network's deep domain expertise, makes them an ideal institutional backer for a firm with FailUp Capital's focus. We are grateful for their confidence and look forward to building alongside them.

What This Capital Enables

The $130M Fund will be deployed across a focused portfolio of hard tech and deep tech companies at the earliest stages of company formation. Our investment thesis targets five primary domains:

Semiconductors and Advanced Computing: The global chip shortage has exposed the fragility of semiconductor supply chains and the strategic importance of domestic fabrication capability. We are investing in companies developing novel chip architectures, advanced packaging technologies, compound semiconductor materials, and the equipment innovations that will define the next generation of electronics manufacturing.

Advanced Materials: Materials science sits at the foundation of virtually every hard tech domain. New classes of metals, ceramics, polymers, and composites enable breakthroughs in everything from aerospace to medical devices to energy storage. We back founders who have discovered fundamentally new materials properties and are building companies to commercialize them at scale.

Aerospace and Defense Technology: The commercialization of space and the modernization of defense systems represent massive opportunities for deep tech founders. Propulsion systems, satellite technologies, hypersonics, autonomous systems, and advanced sensing are all areas where scientific breakthroughs translate directly into commercial and strategic value.

Energy and Climate Technology: The energy transition demands hardware innovation at unprecedented scale. We invest in companies developing next-generation solar technologies, advanced battery chemistries, nuclear energy (including fusion and advanced fission), carbon capture, and the grid infrastructure innovations that will make a carbon-neutral economy possible.

Robotics and Automation: The convergence of machine learning, advanced actuators, and novel sensing technologies is enabling robots that can operate in unstructured environments — manufacturing floors, warehouses, hospitals, and eventually the outdoors. We back founders building the hardware and control systems that will define the next generation of physical automation.

Our Investment Philosophy

The name "FailUp" captures something important about how we think. Building a hard tech company is not a linear journey. It involves hypothesis testing, experimental failure, pivoting based on new data, and iterating until a breakthrough emerges. The founders we back are not deterred by failure — they use it as information. They understand that in deep tech, the path to success runs through hundreds of experiments that do not work.

This philosophy shapes how we engage with our portfolio. We do not pressure companies into premature scaling. We do not impose arbitrary deadlines on scientific processes that have their own inherent timelines. We partner with founders for the long run, understanding that the most important technologies require time to mature. Our capital is patient capital, deployed with conviction in founders and their underlying scientific insights.

We also believe strongly in the power of the team. Deep tech founders are often technical experts who are transitioning into company building for the first time. We bring operational support, commercial network connections, and business-building experience to complement the technical genius our founders bring to their work. The best outcomes in hard tech come when world-class science meets world-class execution.

Looking Ahead

With this Seed Round closed, FailUp Capital is actively deploying capital and building out our portfolio. We are meeting founders at the earliest stages — often before they have left their PhD programs or post-doctoral research positions. We are evaluating opportunities across all five of our target domains, and we are particularly excited about a number of proprietary technologies that are not yet publicly disclosed.

We believe that the next decade will be remembered as the golden age of hard tech investment. The convergence of capable AI tools, advanced manufacturing, new materials, and unprecedented private capital flowing into the sector is creating conditions for breakthrough companies to form and scale at a pace that was not possible even five years ago.

If you are a founder building in hard tech or deep tech, we want to hear from you. If you are a researcher with a technology that might have commercial applications and you are wondering whether the time is right to start a company, we want to have that conversation. And if you are a limited partner interested in co-investing alongside FailUp Capital and Alumni Ventures, please reach out.

The hard problems are worth solving. The founders who take them on deserve partners who believe in them unconditionally. That is what FailUp Capital is here to do.

Key Takeaways

• FailUp Capital has closed an $130M Fund backed by Alumni Ventures (av.vc), announced February 2021.
• The fund targets hard tech and deep tech companies at the seed and pre-seed stage, with a focus on science-driven founders.
• Five primary investment domains: semiconductors, advanced materials, aerospace/defense, energy/climate tech, and robotics/automation.
• Alumni Ventures' university alumni network provides unique deal flow from leading academic research institutions.
• FailUp Capital's philosophy centers on patient capital, technical rigor, and long-term partnership with founders who are building the future through scientific breakthroughs.
• The firm is actively deploying capital and welcoming conversations with founders, researchers, and co-investors.