1517 Fund

1517 Fund Research

Investment Thesis & Core Philosophy

1517 Fund is a self-described "anti-establishment educational institution" and venture capital firm founded in 2015 by Danielle Strachman and Michael Gibson—cofounders of the legendary Thiel Fellowship. The fund's core thesis is radical: great founders don't need university degrees, and outstanding founders are often found in the oddest places, on the edges of institutions, and among those least likely to be recognized by "sclerotic institutions."

The fund exists to back dropouts, renegade students, and deep-tech scientists working on ideas that would appear in science fiction. Unlike traditional VCs that filter for prestigious backgrounds and established networks, 1517 explicitly invests in founders without undergraduate degrees and researchers working on problems that institutions dismiss as too weird or speculative.

The name "1517" refers to October 31, 1517, when Martin Luther nailed the Ninety-Five Theses to the church door in Wittenberg to protest the sale of indulgences—pieces of paper the establishment church sold, claiming they would save your soul. 1517 Fund sees universities as the modern version of this scam: selling expensive pieces of paper (diplomas) and telling students they can't be taken seriously without them. The fund's mission is a "New Reformation" that liberates young people from credential-dependent gatekeeping.

Investment Philosophy & Process

1517 operates as both a venture capital fund and a community platform. The fund's philosophy is deeply people-centric: "it's more about the 'who' rather than the 'what'." They make investments at the earliest stages—from idea/R&D phase through seed—and provide far more than capital. They offer:

• Direct mentorship and office hours with partners
• Weekly check-ins and operational support
• Rapid decision-making (decisions typically made in 30 minutes to a few days)
• Connection to a global community of 3,000+ hackers, makers, renegade scientists, and founders
• Access to workshops, events, and networking opportunities
• The Medici Program offering non-dilutive grants ($1k+) for early-stage idea validation

The fund explicitly operates to take young people seriously—meeting with founders for months before they even know they should apply to the Thiel Fellowship or talk to VCs. This contrasts sharply with traditional venture that demands warm intros and proven traction.

Stage Focus & Check Size

Primary Stage: Pre-Seed and Seed

• R&D/Idea stage: $50K checks for raw founders with an idea
• Pre-Seed: Average check size of $400,000
• Seed: Up to $1,000,000 for deep tech/sci-fi seed companies
• Selective Series A follow-on participation for top performers

Check Size Range: $50,000 - $1,000,000

• Lower end: $50K-$100K for founders with just an idea or early R&D project
• Average: $400K for pre-seed investments
• Upper end: Up to $1M for exceptional deep tech/sci-fi projects at seed stage

The fund has 4 flagship funds with $175M+ in capital committed, plus 15+ SPVs for follow-on investments in top-performing portfolio companies.

Sector & Tech Focus

1517 explicitly states: "We like software, hardware with a data play, deep tech/sci-fi tech, and biotech."

Primary Sectors:

• Software: Platforms, developer tools, infrastructure, SaaS
• Hardware + Data: Hardware companies with embedded data/software moat
• Deep Tech & Sci-Fi Tech: Quantum computing, advanced materials, space tech, biotech, advanced manufacturing
• Biotech & Life Sciences: Longevity, precision medicine, synthetic biology
• Developer Tools & Infrastructure: APIs, DevOps, databases, observability
• Enterprise SaaS: Vertical SaaS, automation, tools for non-traditional users

Notable Portfolio Companies by Sector:

• Quantum Computing: Atom Computing (neutral atom quantum computing)
• Space/Robotics: Xona Space Systems, MakeRain (cloud seeding via drones), Presso (robo-garment cleaner)
• Software/Data: Lambda Labs (deep learning cloud), Loomia (asynchronous video), Fountain (hiring SaaS), Fossa (open-source security)
• Hardware/Manufacturing: Eeva (advanced laundry machines), nTop (engineering design SaaS), Cents (laundromat SaaS)
• Infrastructure: Next-gen GPS (Xona Space), quantum computing, deep learning infrastructure

The portfolio reflects the fund's "sci-fi first" investment approach—backing technologies that feel speculative but could reshape industries.

Recent Activity & Fund Status

Fund Status: Actively deploying across 4 flagship funds with $175M+ committed capital

Recent Notable Investments (2024-2025):

• Loomia (asynchronous video SaaS) - Pre-Seed/Seed
• Lambda Labs (deep learning cloud & hardware) - Early stage
• Astrus (semiconductor funding) - Q3 2025, co-led with Khosla Ventures
• Xona Space Systems (next-gen GPS infrastructure) - Seed
• Atom Computing (neutral atom quantum) - Early stage
• Various deep tech and sci-fi projects across hardware, software, and biotech verticals

Last Known Major Milestone: Fund IV closing announced May 2025 - significant milestone as less than 15% of funds make it to Fund IV, marking transition from "emerging managers to an emerging firm."

Most Recent Activity: November 2025 - investment in Loomia (asynchronous video SaaS)

Fund Status: Latest reporting (Sep-Dec 2025) indicates actively deploying with 104+ total investments and 4 new investments in last 12 months. Fund appears to be in strong deployment phase.

Portfolio Highlights & Notable Outcomes

Massive Success Stories (from Thiel Fellowship days & early 1517 investments):

• Ethereum - Founded by Vitalik Buterin (Thiel Fellow) - Multi-hundred billion dollar asset
• Figma - Early 1517 investment - Valued at $20B+, private
• Loom - Early stage investment with weekly mentorship from Danielle/Michael - Key founder Joe Thomas credits 1517 for keeping them alive ("wired us money before deal docs were done")
• Luminar Technologies - Early 1517 investment - IPO'd in December 2020
• OYO Rooms - Thiel Fellow founder Ritesh Agarwal - Multi-billion valuations in India market
• Longevity Fund - Thiel Fellow founded venture fund - $100M+ AUM, investor in life extension/longevity tech

Active Portfolio Companies & Exits:

• First Investor Recognition: 1517 was first institutional investor in Luminar, Lambda, nTop, Cents, and Loom
• Portfolio breadth: 104+ companies across software, hardware, deep tech, biotech
• Successful exits and IPOs: Multiple portfolio companies have achieved billion+ valuations

Team & Leadership

Cofounders & General Partners:

1. Danielle Strachman - General Partner, Co-Founder

   • Decade+ of experience working with young entrepreneurs
   • Founded and directed Innovations Academy (K-8 charter school, 400 students) in San Diego with focus on project-based learning
   • Led design and operations of Thiel Fellowship founding (2010)
   • Has worked with legendary founders including Vitalik Buterin and Ritesh Agarwal
   • Backed 170+ companies across angel and pre-seed
   • Nonresident Senior Fellow at Brookings Institution for education/alternative pathways
   • Public speaker on venture capital success and founder support

2. Michael Patrick Gibson - General Partner, Co-Founder

   • Philosophy dropout and contrarian thinker
   • Initiated Thiel Fellowship with Peter Thiel
   • Dedicated to dismantling the "paper belt" (diploma/credential gatekeeping)
   • Has mentored hundreds of early-stage founders and deep tech scientists
   • Vision-setter for the anti-establishment educational model

Partners:

1. Zak Slayback - Partner

   • Provides portfolio support and marketing/community building
   • Engages on strategy and founder mentorship
   • Active on social media and in community building

2. Nick Arnett - Partner

   • Founded WayPaver Foundation (nonprofit think tank for lunar settlement)
   • Never attended university as a student (lifelong learner, self-directed education)
   • Led community development at Thiel Fellowship
   • Started nonprofit at age 18 studying entrepreneurial ecosystems in small/midsized US cities

3. Haylee Johnson - Operations Partner

   • Based in San Jose, CA
   • Manages fund operations, community building
   • Ensures inclusive and accessible community
   • Supports leadership team and founder relationships

Decision Process & Engagement Model

Decision Making: Partnership-based with rapid decision cycles

• Decisions typically made within 30 minutes to a few days (not weeks)
• Collaborative among general partners
• Strong emphasis on founder chemistry and mentee relationship quality

Deal Sourcing: Predominantly direct from community, events, and reputation

• Direct application via website form ("Write in! We read all submissions")
• Community word-of-mouth and recommendations
• Thiel Fellowship alumni network connections
• Medici Program participants (non-dilutive grant recipients)
• Hacker camps, teen camps, workshops, and events
• Global community of 3,000+ creators

Warm Intro: NOT required—direct applications are reviewed and responded to within days

• Explicitly encourages founders to write in cold
• Founders can attend camps, workshops, and events to build relationships
• Medici Program available for idea validation before formal pitch

Lead Tendency: Leads and participates at early stages

• Often the first institutional investor in companies (Luminar, Lambda, Loom, nTop, Cents)
• Provides meaningful capital and mentorship at inception
• Later participation in Series A/B through SPVs for proven winners

Typical Involvement: Deep operational and mentorship support

• Weekly office hours and check-ins
• Founding member of founder's inner circle
• Operational support and tactical advice
• Community introductions and talent sourcing
• Follow-on investment capacity through SPVs

Geographic Focus

Primary: United States (headquarters in Telluride, Colorado with San Francisco presence)

• SF Bay Area (software, AI/ML)
• New York City (enterprise, fintech)
• Seattle (tech infrastructure)
• Toronto (through Venture Partner Harry Gandhi)

Secondary: Global reach through community

• Supports international founders through Discord and online community
• 3,000+ global hacker community
• International attendance at Flux and other events
• Community operates globally but investment focus remains US-heavy

Founder Preferences & Thesis

Primary Target: Founders the system rejects

• College dropouts and non-degree holders
• Renegade students working outside normal academic paths
• Deep-tech scientists working on speculative/sci-fi problems
• Young people (teens through early 20s) with exceptional ideas
• Makers, hackers, and self-taught builders
• Founders from non-elite educational backgrounds
• Women and people of color historically excluded from VC

Secondary Target: Technical founders from major tech companies

• Stripe, Google, AWS, and hyperscaler alumni
• Engineers shipping at scale who want to build own companies
• Applied scientists and researchers leaving academia/industry labs

Anti-Thesis

The fund is unlikely to invest in:

• Traditional startup archetypes (MBA founders with pristine pedigrees)
• Companies where the founder's resume is the investment thesis
• Late-stage companies (Series B+)
• Companies without technical founder involvement
• Pure consumer social (unless unique deep tech angle)
• Traditional services or low-tech business models
• Founders seeking large institutional validation before proving concept
• Companies misaligned with founders' genuine interests/obsessions

Conclusion

1517 Fund represents a unique category of venture capital: philosophical activists disguised as VCs. By systematically backing dropouts, renegades, and sci-fi scientists at the inception stage, they've built a track record of discovering multi-billion dollar outcomes (Ethereum, Figma, Luminar, OYO) that the traditional VC system would have rejected. The fund's strength lies not in following a traditional VC playbook but in inverting it.