Unleashing Potential: How Hipstr's $100M Debut Is Shaking Up Venture Capital

It’s risky business: the new venture firm Hipstr led by Mark and Tommy Bezos, the brothers of Amazon’s founder Jeff Bezos, has just raised a $100 million debut fund to invest in early-stage startups in consumer, fintech and enterprise. Going head-to-head with general partners at established firms with richer track records and greater resources, the Bezos siblings are likely to inject the startup ecosystem with an extra dose of ambition.

A BEZOS Venture Beyond AMAZON

Though he’s the brother of the Amazon mastermind, it’s clear that the Bezos brand is their own: with the launch of their new venture capital firm called Hipstr, Mark and Tommy Bezos are ready to make some unconventional bets. Serving as the firm’s managing partner, Mark Bezos, with the help of his brother Tommy as a partner, has thrown himself into the undulated waters of venture capital and is swimming ahead strong. Mark and Tommy’s resume, along with a fresh and collaborative approach towards investing, promise to make the Hipstr brand an investment powerhouse.

Hipstr's Investment Strategy: Nurturing Innovation

And the main goal of Hipstr is to help those companies acquire their seeds and their Series A capitol, which is the sometimes $500,000 to $5 million that gets companies off of the ground, and puts them on their feet. Hipstr’s investment strategy is to support companies with strong founding teams, with an inspirational vision, and with a roadmap to execution. And it currently has funds earmarked for a fintech play that provides a digital banking platform for banks and a consumer fintech solution for pet owners.

Riding the Wave of Change in Venture Capital

And perhaps that’s what the venture capital world – which has been so slow to pull the lever on deal activity – is in need of right now. By concentrating at the earliest possible stages of a business and by writing smaller cheques, Hipstr may just be the surprise of 2013. It’s a distinct set of advantages and could see Hipstr become the next home to an internet upstart. The next big thing could well be right here.

Why Hipstr? A Name with Character

Hipstris it is (the Hipstr brothers don’t want to be confused with the hipsters), and it is a not-so-veiled reference to being ‘hip’ to unusual, avant-garde solutions, being ‘trendy’ and, above all, to the brotherhood’s zeal to become known for their vibrant approach and their aspirations to break the mould of an already overcrowded venture capital world.

Building a Future-Forward Portfolio

Hipstr, whose offices are in New York City, itself is less a firm that makes investments, than it is an entity that makes relationships. And cultivates a community of innovation, too. That’s because Hipstr boasts a dedicated team of investment professionals, along with operational experts. They are an ambitious bunch; indeed, it’s easy to see that Hipstr is investing for the long haul. Many more startups will be on the menu as Hipstr expands its reach.

A New Chapter for Startups

To small emerging ventures, the emergence of Hipstr is a significant signal of opportunity and a new marketplace that offers the potential for sustainability and continuing growth. By creating the space for early stage investments and providing a platform for startups to grow, Hipstr is poised to become an essential contributor to the ecosystem of entrepreneurship. Its priority on the development of portfolio companies – adding not just financial muscle, but social capital and an injection of goodwill and support – positions the venture as a partner for investees, committed to helping their success and growth.

About AMAZON

Although this article focuses on the slick, low-stakes story of Hipstr and its Bezos connection, it should also serve as a reminder of the broader Amazon legacy. The company whose roots are so closely tied with Jeff Bezos’s garage has evolved into one of the world’s most ubiquitous e-commerce, cloud computing, digital streaming and artificial intelligence giants. But Amazon has also steadily led the pack when it comes to adopting cutting-edge tech, pushing forward the boundaries of what humans can buy online and how they can enjoy it. So it’s appropriate to see the Bezos brothers spinning out a startup themselves, furthering a family tradition of fostering entrepreneurship and helping to seed the next generation of tech giants just as their parents did.

In closing remarks, I want to outline that Hipstr is here to stay and though we got off to a running start, we aim to make venture capital exciting again. We, the Bezos brothers, are ready to urge the innovators of tomorrow to unlock their full potential and liberate their ideas from the confinements of embryonic stages, in order to come alive and soar to new heights of development. As we initiate this new cycle, venture capital promises to experience a renaissance, assuring a golden era of growth and scalability for startups across the globe.