Authentic Ventures Research
Investment Thesis
Authentic Ventures is a seed-stage venture capital firm founded in 2016 and based in Oakland, California. The firm's core thesis centers on backing exceptional teams solving hard problems, with a deliberate and strategic commitment to women and underrepresented minority founders. Rather than viewing diversity as a checkbox, Authentic Ventures has architected its entire investment approach around this principle—approximately 50% of their portfolio consists of companies led by women or minorities, reflecting a genuine focus on inclusive capitalism.
The firm leverages a curated network of 1,000+ operators and executives, many of whom are women and minorities themselves, who provide portfolio companies with strategic guidance, recruiting support, and operational expertise. This operator-heavy approach distinguishes them from traditional seed funds and enables them to add significant value beyond capital.
Sector Focus
Authentic Ventures concentrates on software companies across three primary verticals:
1. B2B Software / Enterprise SaaS:
- Vertical SaaS solutions for specific industries
- Enterprise workflow automation
- HR tech and employee management (recent example: Sparrow, Series A partner)
- Business productivity tools
2. AI and Machine Learning:
- AI/ML infrastructure and tooling (invested in Cerebrium, AI/ML execution platform, July 2025)
- LLM applications and AI-powered business tools
- Software that leverages AI to solve enterprise problems
- Developer tools with AI capabilities
3. Developer Tools & Infrastructure:
- Developer tooling and productivity platforms
- API platforms and infrastructure
- Technical infrastructure for software development
- Coding assessment and hiring tools (portfolio company Byteboard, acquired by Karat Jan 2025)
Selective Consumer Focus:
- Consumer subscription businesses (highly selective)
- Travel and hospitality tech (portfolio company Wander)
Stage Focus
Authentic Ventures targets early-stage investments from Pre-Seed through Series B, with primary concentration at Seed and early Series A:
- Pre-Seed: $100K-$500K (rare)
- Seed: $500K-$2M (primary focus)
- Series A: $1M-$5M (occasional lead/follow)
- Series B: Follow-on investments in strong portfolio performers
The firm makes 4-6 new investments annually from Fund II, maintaining a concentrated and hands-on approach.
Check Size
Based on portfolio analysis and market data:
- Typical range: $250K - $2M
- Most common: $500K - $1.5M for seed rounds
- Fund II size: $25.8M (closed November 2020)
- Target portfolio ownership: 10-15% for seed investments
Recent investments confirm this profile: Cerebrium seed round $8.5M (co-led with others), Carrot seed $4.2M, Clearbrief seed $4M.
Lead Tendency
Authentic Ventures demonstrates a mixed lead/follow approach:
- Frequently leads seed rounds ($500K-$2M range)
- Co-leads with other VCs on larger rounds
- Participates in Series A rounds with other firms
- Actively sources through their operator network
- Not exclusively a lead investor, but comfortable leading category-defining or founder-fit investments
Recent Activity
Fund Status: Actively deploying Fund II ($25.8M, closed Nov 2020)
Recent Investments (2024-2025):
- July 6, 2025: Cerebrium - Seed, $8.5M (AI/ML execution platform) - Co-investors: Gradient Ventures, Y Combinator
- May 22, 2025: Carrot (African fintech) - Seed, $4.2M - Co-investors: MaC Venture Capital, Partech
- March 14, 2024: Clearbrief - Seed III, $4M - Co-investors: How Women Invest, Reign Ventures
Portfolio Activity:
- 35+ total portfolio companies
- 1 unicorn in portfolio
- 3 exits to date
- Latest exit: Byteboard (technical hiring platform) acquired by Karat, January 2025
Notable Recent News:
- Sparrow (portfolio co.) announced $20M Series A (Feb 2022) - WndrCo-led round including Authentic Ventures
- Consistent activity in AI/ML and developer tools sectors
- Active participation in Series A co-lead rounds with tier-1 investors
Portfolio Highlights
Exits (3 to date):
- Byteboard (Acquired by Karat, Jan 2025) - Technical hiring/assessment platform
- 2 additional exits (undisclosed public)
Active Portfolio Companies (selected):
- Cerebrium - AI/ML execution platform (raised $8.5M seed, July 2025)
- Carrot - African fintech for digital lending (raised $4.2M seed, May 2025)
- Clearbrief - B2B SaaS (raised $4M seed, March 2024)
- Sparrow - Employee leave management/HR tech (raised $20M Series A, Feb 2022, led by WndrCo)
- Wander - Travel and hospitality technology
Notable Companies (35+ total portfolio): Portfolio spans B2B software, AI/ML tooling, fintech, HR tech, and developer tools, with demonstrated expertise in:
- Hiring and talent tech (Byteboard, Karat partnership)
- Employee/HR software (Sparrow with $20M+ in follow-on)
- AI/ML infrastructure (Cerebrium, recent)
- International fintech (Carrot, African market)
Team & Decision Making
Confirmed Team:
-
Lindsay Lee - Founder & Managing Partner
- 20+ years as technology investor
- Deep network in Silicon Valley
- Founded Authentic Ventures in 2016
- Previously: Co-founder of financial services software company
- Known for emphasizing diversity and inclusive leadership
-
Marylee Thexton - Executive Support
- Senior operational background
- Manages firm operations and portfolio support
Operator Network:
- 1,000+ curated operators and executives (many women/minorities)
- Serve as strategic advisors, recruiters, and operational support
- These advisors have direct industry expertise and recruiting networks
- David Kirk and Robin Bordoli mentioned as operator-heavy advisors
Decision Process:
- Founder-led with Managing Partner driving decisions
- Investment committee likely includes Managing Partner + key advisors
- Strong emphasis on founder fit and team quality
- Due diligence informed by operator network feedback
- Timeline: Typical seed investment decision cycle of 2-3 weeks for aligned deals
Investment Preferences & Anti-Thesis
Founder Preferences:
- Exceptional founding teams with deep problem expertise
- Women and underrepresented minority founders (50%+ of portfolio)
- Technical founders or strong product-minded founders
- Founders solving "hard problems" (ambitious missions)
- Ideally founders with prior startup or scale-up experience
Sector Preferences:
- AI/ML and developer tools (increasing focus)
- B2B SaaS with vertical specialization
- HR tech and employee management
- Enterprise software solving specific industry problems
- International expansion founders (seen in Carrot investment)
Anti-Thesis:
- Consumer gaming and pure entertainment (though some consumer subscription)
- Cryptocurrency and blockchain-focused projects
- Highly capital-intensive hardware
- Late-stage companies requiring large checks
- Founders without clear technical vision
Geographic Focus
- Primary: US (especially California Bay Area and Oakland)
- Secondary: US broader (NYC, other tech hubs)
- International: Selective (seen in Carrot - African fintech)
Warm Introduction Requirements
Based on fund profile and operator network structure:
- Strongly preferred: Warm introductions via operator network
- Acceptable: Direct approach to Lindsay Lee if strong fit
- Decision timeline: 2-3 weeks for aligned founders with warm intros
Typical Involvement
Authentic Ventures typically takes:
- Board seat or observer: For lead seed investments
- Active advisor role: Through operator network members
- Hands-on operational support: Recruiting, introductions, strategic guidance
- Limited passive involvement: For follow-on or smaller check investments
Fund Lifecycle & Future
- Fund II: $25.8M (closed Nov 2020) - currently deploying
- Deployment stage: Mid-to-late stage (4-5 years in)
- Fund III: Not publicly announced, but firm likely raising in 2025-2026
- Future direction: Likely to expand to larger check sizes while maintaining diversity focus
Summary
Authentic Ventures represents a modern archetype of inclusive seed capital that has operationalized diversity as a core competitive advantage. Founded by Lindsay Lee with deep Silicon Valley experience, the firm combines mission-driven diversity commitment with a sophisticated operator network that adds real value to portfolio companies. Their focus on B2B software, AI/ML, and developer tools, combined with 50%+ women/minority founder portfolio, creates a differentiated positioning in the seed market. The firm's track record includes notable companies (Sparrow, Byteboard) and demonstrates consistent activity in AI/ML and fintech sectors through 2025.