RFG Fund II invests in the most resilient, enterprising and often overlooked founders who are at the earliest stages of building companies that improve how we learn, work and live.
2021
RFG is currently investing out of a $20M Fund I. We have made 20 investments across education, work, health and financial inclusion. RFG Fund II will invest $40M to $45M in the most resilient, enterprising and often overlooked founders who are at the earliest stages of building companies that improve how we learn, work and live. Stage / Round & Check Size / # of Investments: Pre-Seed: We will invest ~$500K in $1 - 2M rounds to buy 6 - 8% stakes. These deals will likely use SAFEs or convertible notes; the expected average post-money valuation cap is $8.5M. We plan to make 20 pre-seed investments. Seed: We will invest $1M in $2 - 4M rounds to buy 6 - 8% stakes. The deals will be a mix of SAFEs, convertibles and equity priced rounds; the expected average post-money valuation cap is $17M. We plan to make 15 pre-seed investments. Pacing and Holding Period: We will make 35 total investments; on average we’ll make seven (7) investments annually during the course of the five-year investment period. We plan to hold these investments for 5 to 10 years. Generally, we will hold positions until either: (a) an exit; (b) the company is within our MOIC forecast and there is a liquidation opportunity or (c) the company is projecting below our MOIC forecast and there is a viable liquidation opportunity. Investing across the United States: In Fund I 100% of our investments were in U.S. domiciled companies, with ~66% outside of major tech hubs (e.g., NY, SF, Boston). We anticipate a similar outcome in Fund II.
