BURLINGAME, Calif.--(BUSINESS WIRE)--Today, Refactor Capital, led by solo capitalist Zal Bilimoria, is announcing it has closed a $50 million Fund 4. With 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.
“I’m excited to continue backing founders solving hard but not impossible problems in an effort to create a better future for society,” said Zal Bilimoria, founder of Refactor. “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.
Raised entirely from US investors, Refactor plans to invest in 20-25 companies over the next three years with this fourth fund. Since its 2016 launch, Refactor has invested in over 100 companies including four unicorns to-date such as Solugen and Astranis, as well as startups working on novel battery technologies, cancer therapies, IVF advancements, and innovations in the $5T chemicals industry -- the largest industry on the planet.
"Having Zal as an investor has been a game-changer for Solugen, both in our early days and now," said Gaurab Chakrabarti, co-founder and CEO of Solugen, a Texas based startup manufacturing chemicals using biology. "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."
Solugen has raised $600M+ of capital to date and last week, the company announced a conditional commitment of over $200M from the Department of Energy Loan Programs Office (LPO) to build their next Solugen Bioforge in Minnesota. The LPO previously awarded loans to only a small group of startups, most notably Tesla in 2010.
Before founding Refactor, Bilimoria was a partner at Andreessen Horowitz, where he helped launch a16z’s first Bio Fund in 2015. Prior to entering the venture capital 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.
"With less than fifteen percent of venture firms making it to a fourth fund, Zal has cracked the code to running a successful firm,” said Kevin Irwin, CIO of Knollwood Investment Advisory. “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.”
About Refactor
Founded in 2016 by solo capitalist Zal Bilimoria, Refactor is a venture capital firm focused on early-stage investments in companies in bio, climate, and hard tech innovation. With a hands-on approach and a deep commitment to driving meaningful innovation, Refactor seeks to empower startups with capital and strategic support – aiming to “refactor” industries for a healthier and more sustainable future.
