SOSV — Investment Thesis & Preferences

SOSV Research Document

Investment Thesis

SOSV is "The First Check in Deep Tech®" - a global, multi-stage venture capital firm uniquely positioned at the intersection of venture capital and startup development programs. Founded in 1995 by serial founder Sean O'Sullivan, SOSV's core thesis is that the most transformative companies solving human and planetary health will emerge from deep tech founders who combine rigorous science and engineering with entrepreneurial vision.

SOSV doesn't just provide capital; it provides an extraordinary ecosystem. The firm operates HAX (hardware and robotics) and IndieBio (biotech and life sciences) - industry-leading startup development programs with 85,000 square feet of in-house labs, manufacturing facilities, and specialized equipment. SOSV believes that great founders come from all geographies and backgrounds, and systematically seeks to democratize deep tech innovation.

Core Investment Focus

Human and Planetary Health: SOSV's dual mandate drives investment across:

Planetary Health (Climate & Sustainability)

Climate tech (renewable energy, carbon removal, sustainable materials, circular economy)
Critical minerals extraction and processing
Sustainable manufacturing and advanced materials
AgTech and regenerative agriculture
Clean energy infrastructure

Human Health

Therapeutics and biotech (addressing cancers, genetic diseases, pandemic preparedness)
Diagnostics and medtech
Women's health (endometriosis, fertility, women-specific conditions)
Digital health and remote care
Assistive robotics and accessibility

Deep Tech (Cross-cutting)

Robotics and automation
AI and machine learning (applied to real-world physical problems)
Hardware and advanced manufacturing
Physical AI (intelligent machines that sense, decide, and act)
Industrial biotech and synthetic biology

Investment Model: "First Check in Deep Tech®"

SOSV operates a distinctive two-phase investment model:

Phase 1: Pre-Seed via Startup Programs

HAX: 4-month hardware accelerator focused on robotics, advanced manufacturing, and physical hardware
IndieBio: 4-month biotech accelerator turning scientists into entrepreneurs
Check size: Up to $550,000 per company
Scope: ~60 pre-seed investments annually
Program locations: San Francisco, New York, Newark (HQ in Princeton, NJ)
Global presence: Engineering and manufacturing teams in Shenzhen, Pune, and Tokyo
Program value: Beyond capital - founders get 85,000 sq ft of specialized labs, equipment access, design and engineering teams, weekly mentorship, and investor introductions

Phase 2: Follow-on Rounds

Participates in 150+ follow-on rounds annually
Network of 1,000+ co-investors
Series Seed through Series B+ support
Strong track record: Portfolio companies raised $6.5B between 2021-2024 with SOSV participating in 579 follow-on rounds

Stage Focus & Check Sizes

Pre-Seed (via programs): Up to $550,000
Seed: $1M-$3M range typical
Series A: Participation in larger rounds ($8M-$20M+)
Follow-ons: Growth capital for proven portfolio companies

Lead Tendency: SOSV leads pre-seed investments (first institutional money via programs). For follow-ons, typically co-leads or participates in rounds led by larger firms (Series A+).

Portfolio Strength & Track Record

Scale and Impact

900+ portfolio companies across all cohorts
231 companies graduated from HAX and IndieBio (2021-2024)
$6.5 billion raised by portfolio companies (2021-2024)
1,000+ co-investors in portfolio network
64% women representation in portfolio (32% female founders, 44% hold PhDs)

Sector Concentration

Climate Tech: 147 companies ($11.1B valuation in top 100, $3.68B invested)
Human Health: 137 companies (therapeutics, diagnostics, medtech, digital health)
Robotics & Automation: 57 companies
AI & Machine Learning: 52 companies (applied to physical world)
Therapeutics: 50 companies
Sustainable Manufacturing: 75 companies

Notable Portfolio Companies & Exits

Ten63: AI platform for drug discovery (drugging "undruggable" cancers)
NotCo: AI-driven plant-based foods ($300M+ valuation, Series C+)
unspun: 3D weaving for sustainable fashion ($57M+ raised)
Novoloop: Plastics upcycling (Series A, $21M+)
Upside Foods: Cultivated meat production (53,000 sq ft facility in Emeryville)
OpenTrons: Liquid-handling robotics (now billion-dollar company)
Calder Biosciences: Universal vaccine approach (Pre-Seed focus)
Hoofprint Biome: Enteric methane reduction via natural biology
Prolific Machines: Cultured meat at scale
Protonintel: AI for kidney care and home dialysis
Hyperlume: Optical interconnects for datacenters
Cocoon: Low-carbon cement from industrial CO2

Recent Activity & Fund Status

SOSV V (Flagship Fund)

Closed: April 2024
Size: $306 million (largest fund to date)
AUM: $1.5 billion total (across all funds)
Focus: Deep tech for human and planetary health with emphasis on decarbonization
Status: Actively deploying

Recent Investments (2025-2026)

January 2026: FluoSphera (antifungal therapeutics, Seed)
November 2025: Multiple IndieBio NY companies (Investor Showcase announced for March 11, 2026)
Ongoing: ~60 pre-seed investments annually via HAX and IndieBio
Follow-ons: Participating in 150+ follow-on rounds per year

Team & Decision Process

SOSV operates with a partnership model where major investment decisions are discussed with relevant program partners. Pre-seed programs accept applications on a rolling basis with decisions made within 2-3 weeks. Investment committee votes on larger follow-on investments. Decision-making emphasizes founder background, problem validation, and team execution capability.

Geographic Focus

SOSV maintains a truly global presence with 900+ portfolio companies across 59 countries. Primary markets include North America (349 companies), Europe (122), East Asia (56), and India (34). Physical operations span San Francisco, New York, Newark, Princeton (HQ), Shenzhen (manufacturing), Pune (engineering), and Tokyo (Asia-Pacific).

Key Metrics & Stats

Founded: 1995 (31 years of investing experience)
AUM: $1.5 billion across all funds
Latest Fund: SOSV V ($306M, closed April 2024)
Annual Pre-seed: ~60 investments up to $550k each
Annual Follow-ons: ~150 investments
Portfolio Size: 900+ companies
Program Graduates (2021-2024): 231 companies
Founder Demographics: 44% PhD holders, 32% female founders, 500+ women backed, founders from 79 nationalities
Portfolio Raises: $6.5B (2021-2024)
Exit Count: 44 to date
Co-investor Network: 1,000+ partners
Lab Space: 85,000 sq feet across all locations
Team Size: 80+ across programs and management