Crosscut Ventures Research
Investment Thesis
Crosscut Ventures invests in early-stage frontier technology companies addressing humanity's most pressing problems. Founded in 2008 in Los Angeles—defying conventional wisdom about venture capital geography—the firm partners with visionary entrepreneurs building category-defining solutions in deep tech, hardware, and software. The investment philosophy centers on the belief that exceptional founders emerge from technical communities (particularly SpaceX, Anduril, Northrop, and Boeing in Southern California) and develop ambitious visions that transcend typical startup thinking. As Brian Garrett notes, "When they think about starting a company, they don't come with small ideas. They're thinking about big, hairy problems that humanity is facing."
Sector and Stage Focus
Crosscut's primary investment focus areas include:
Frontier Technologies:
- Energy transition and power systems (including advanced nuclear)
- Space economy and satellite technology
- Climate and decarbonization solutions
- Advanced manufacturing and materials science
- Robotics and automation
- Defense systems upgrade
- Supply chain resilience and reshoring
- Underwater exploration and marine technology
Business Models:
- Hard tech and deep tech (hardware-centric)
- Software companies serving frontier tech ecosystems
- Blended portfolios combining hardware and software elements
Investment Stages:
- Seed: $500K-$3M for companies with early product and founder credibility
- Series A: $2M-$10M for companies with product-market fit
- Occasional pre-seed investments for exceptional founders
Team and Leadership
Crosscut has established a deep bench of experienced operators and investors:
Core Partners:
- Brian Garrett, Co-Founder & Managing Director: Former entrepreneur at StyleSaint, 20+ years in venture capital. Brings operational experience and founder empathy to investment decisions.
- Jon Ylvisaker, Partner: Experienced investor focused on cost discipline and founder obsession. Recently joined from Yield Capital Partners. Strong background in identifying founders with relentless work ethic.
- Rick Smith, Co-Founder & Senior Advisor: Legal background (Harvard Law), deep commitment to founder support and long-term partnership. Known for identifying grit and hustle in founders.
- Felipe Alvarez, Sr. Manager of Strategic Finance: Economics background with UCLA MBA, expertise in financial strategy and investment structure.
- Allie Dolido, Chief of Staff: Strategy and innovation background, brings operational excellence to firm management.
Extended Network: The firm maintains relationships with 7+ venture partners providing domain expertise across industries, including former CIA agents, experienced founders, and operators from SpaceX and other frontier tech companies.
Check Size and Capital Deployment
- Typical Seed Investment: $500K-$3M
- Series A Range: $2M-$10M
- Fund Size: Most recent fund (Crosscut VI) is $100M, focused on frontier technologies
- Total AUM: $300M+ across six funds
- Annual Deployment: Actively deploying with 4+ investments in 2025 to date
Decision Process and Timeline
Crosscut operates as a partnership-driven firm with collaborative decision-making. Key characteristics:
- Decision Model: Partnership consensus with strong operator input
- Timeline: Typically 4-6 weeks from first meeting to term sheet for aligned founders
- Due Diligence: Deep technical and operational diligence, founder background assessment
- Board Seats: Standard practice; actively involved in portfolio company governance
- Support Style: Hands-on partner involvement, operational expertise deployment, founder development focus
Lead Tendency
Crosscut leads early-stage rounds in areas of conviction and co-leads with strategic partners. The firm maintains:
- Lead position in seed rounds where they have thesis alignment
- Co-lead participation in series rounds with complementary investors
- Strong follow-on investment discipline (reinvest in successful portfolio companies across multiple rounds)
Evidence from portfolio: Pearl and Gumgum are backed across multiple rounds; Aalo Atomics received follow-on capital; Umbra Space received participation in multiple financing rounds.
Recent Activity and Portfolio Performance
Fund Status: Actively deploying from Fund VI ($100M, closed October 2024)
Recent Notable Investments (2024-2025):
- Aalo Atomics (August 2025): Advanced nuclear company, Series funding
- Solestial (2025): Space-based solar technology
- Umbra Space (2024): Space-based radar technology
- Proteus Space (2024): Autonomous satellite bus design
- SoloPulse (2024): Advanced sensor technology
- Haxion (2024): AI-powered synthetic data
- Cambium Carbon (2024): Regenerative supply chains
Portfolio Exits and Highlights:
- Pacaso: IPO candidate (real estate secondary homes), $1B+ valuation
- Narvar: Exited via acquisition (part of Zendesk family)
- GumGum: Continued growth, multiple founder repeat investment
- Pearl: AI dentistry, scale-up from founder Ophir Tanz (second Crosscut backing)
- Branch: Series C+ trajectory, employee financial services
- BuildOps: Real estate tech platform, strong growth
Portfolio Size: 160+ companies invested since 2008
Founder Development and Support
Crosscut commits at least 1% of all invested capital toward founder development programs, including:
- Leadership coaching and executive development
- Founder mental health and wellness support
- Operational guidance and best practices
- Network access to customer acquisition and growth resources
- Government/commercial sector strategy for deep tech
Geographic Focus
- Primary: Los Angeles and Southern California (local advantage thesis)
- Secondary: San Francisco Bay Area, Austin, Seattle
- International: Selective investments in London, Japan, South Korea
- Rationale: LA has abundant space, 90+ SpaceX spinouts, highest engineering graduate density in US, and emerging deep tech ecosystem
The firm emphasizes that Los Angeles is uniquely positioned for frontier tech with 10x the geographic area of SF, world-class engineering talent, and intersection with North America, Asia, and Latin America trade routes.
Portfolio Company Network and Syndication
Crosscut maintains strong relationships with:
- Co-investors: Bonfire Ventures, Act One Ventures, Addition, and other frontier tech-focused firms
- Strategic Partners: SpaceX ecosystem participants, government contractors, industry leaders
- Venture Partners: Network of operators available for company guidance
Investment Philosophy and Values
Founder-Centric: "We put founders first" is a core value. The firm invests in multiple rounds with founders who prove execution capability, often reinvesting across companies' lifecycles.
Long-Term Partnership: Crosscut's 2008 founding—one month before Lehman Brothers collapse—established that the firm survives economic cycles and maintains steady support through company growth phases.
Operational Excellence: Unlike traditional financial investors, Crosscut partners bring 20+ years of startup and operational experience, enabling hands-on support beyond capital.
World-Changing Ambition: Focus on "big, hairy problems" rather than incremental software features. Portfolio reflects commitment to solving climate, defense, space, and manufacturing challenges.
Market Positioning
Crosscut is positioned as:
- LA's Most Established Seed Fund: Operating since 2008, proving regional venture ecosystem viability
- Frontier Tech Specialist: Deep expertise in hardware, deep tech, and complex manufacturing challenges
- Founder-First Partner: Known for following founders into new markets and supporting them through challenges
- Full-Stack Platform Builder: Developing growth and project finance capabilities to support portfolio companies beyond traditional venture capital lifecycle