How Joshua Kushner created a VC powerhouse with Thrive Capital

As the chaos unfolded that Friday, the first call that Brad Lightcap, OpenAI’s chief operating officer, made was to Joshua Kushner, Thrive’s founder. Earlier this year, Thrive had invested nearly $130 million in OpenAI, valuing the startup at $29 billion. Then, the VC reupped in October when it led another round of financing for OpenAI at a valuation almost three times higher—$86 billion—buying up employee shares in a deal called a “tender offer,” according Fortune’s latest magazine cover story written by Editor in Chief Alyson Shontell. 

When Altman was fired, Lightcap expected a difficult conversation with a panicked stakeholder demanding a full run-down but instead he got the opposite, Shontell explains. Kushner’s priority wasn’t to sort through anything related to the investment or to Thrive. Instead, Kushner’s concern was for OpenAI and its team. “It was, ‘How are you? How’s the company? I’m here for you, I support you guys. What can I do to help?’” Lightcap said in the story.

Throughout the next five days, Lightcap and Kushner spoke around the clock, Shontell writes. “In the midst of a trying leadership moment, where Lightcap needed to keep his 750-person company calm, Kushner became a confidante.”  

The fascinating profile details how Kushner, 38, has made a name for himself apart from his famous, sometimes polarizing, family. Josh Kushner is the youngest son of Charles Kushner, the real estate developer that served jail time for wrongdoing he committed while building his empire. His brother, Jared, married Ivanka Trump in 2009, and later served as presidential aide to his divisive father-in-law, Donald Trump.

Kushner has spent 14 years operating relatively under-the-radar while convincing some of the world’s most successful founders that he is not who they might initially think he is, Shontell writes. “They might expect a blusterer who throws sharp elbows; what they get—as dozens of them told Fortune for this story—is an almost pathologically polite companion and adviser who remembers their favorite whisky brands and constantly reminds them how much he values their friendship. The funding, logistical support, and pep talks arrive whenever they’re needed; the ego trips and the harsh words rarely do. There’s a sizable chip on Josh Kushner’s shoulder. But it’s almost entirely hidden under a thick layer of kindness,” Shontell writes.

Kindness is apparently Kushner’s superpower. Shontell said she conducted more than 35 interviews for the story and no one cited a hostile exchange with Josh. This personality trait helped him invest in the world’s most valuable startup. It also helped his Thrive team…thrive. Early wins include GroupMe, which was acquired by Skype one year after Thrive funded it and Twitch, a gaming startup, that was sold to Amazon for almost $1 billion. There’s also the e-commerce eyeglasses darling Warby Parker that went public at a nearly $7 billion valuation. Thrive has also amassed positions nearing 10% ownership in multiple companies that are now worth billions, including GitHub, biotech data platform Benchling, and Kim Kardashian’s Skims, as well as a good percentage of Stripe.

Read the full story here. 

Talk to you tomorrow,

Luisa Beltran
Twitter: @LuisaRBeltran
Email: [email protected]
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Joe Abrams curated the deals section of today’s newsletter.

VENTURE DEALS

– VAST Data, a New York City-based AI data platform company, raised $118 million in Series E funding. Fidelity Management & Research Company led the round and was joined by New Enterprise Associates, BOND Capital, and Drive Capital.

– Odyssey Therapeutics, a Boston, Mass.-based developer of immunomodulators and oncology medicines, raised $101 million in Series C funding. Ascenta Capital led the round and was joined by OrbiMed, SR One, General Catalyst, Foresite Capital, Woodline Partners, and others.

– MaintainX, a San Francisco-based maintenance and frontline execution platform, raised $50 million in Series C funding. Bain Capital Ventures led the round and was joined by existing investors Bessemer Venture Partners, Amity Ventures, and others.

– Leonardo.Ai, a Sydney, Australia-based AI platform designed to generate images, art, and allow users to build their own AI models, raised $31 million in funding from Blackbird, Side Stage Ventures, Smash Capital, and others.

– ON, a San Francisco-based conversational AI tool for consumer engagement, raised $25 million in funding from Equiam, B3 Capital, and others.

– Sharpen, a Concord, Mass.-based literacy platform for children, raised $11 million in funding. Learn Capital led the round and was joined by others. 

– Spade, a New York City-based provider of transaction data for the card ecosystem, raised $10 million in Series A funding. Flourish Ventures led the round and was joined by a16z, Gradient Ventures, Y Combinator, and others. 

– Yogi, a New York City-based product insights platform for consumer brands, raised $10 million in Series A funding. Blueprint Equity led the round and was joined by existing investors. 

– Trackstar, a New York City-based developer of software designed to make warehouse management systems more efficient, raised $2.6 million in seed funding. TMV led the round and was joined by Y Combinator, Operator Stack, Soma Capital, and angel investors. 

– Harriet, a London, U.K.-based AI tool for HR teams, raised £1.2 million ($1.5 million) in pre-seed funding. Concept Ventures led the round and was joined by Frontline Ventures, Portfolio Ventures, and Notion Capital.

PRIVATE EQUITY

– American Pacific Group acquired Spark Power Group, an Ontario, Canada-based provider of electrical power and maintenance services. Financial terms were not disclosed. 

– Andra Tech Group, a portfolio company of Equistone, acquired Lemmens Metaalbewerking, a Bergeijk, Netherlands-based company specialized in large-scale milling and post-processing of complex welded assemblies.

– Grace Hebert Curtis Athletics, backed by Bernhard Capital, acquired BSSW Architects, a Naples, Fla. and Fort Myers, Fla.-based architectural firm. Financial terms were not disclosed.

– H.I.G. Capital acquired Mainline Information Systems, a Tallahassee, Fla.-based IT solutions provider. Financial terms were not disclosed.

– Mercer Advisors acquired Brighton Financial Planning, a Basking Ridge, N.J.-based wealth management firm. Financial terms were not disclosed.

– Zilliant, a portfolio company of Madison Dearborn Partners, acquired In Mind Cloud, a Singapore-based digital sales platform for manufacturers. Financial terms were not disclosed.

OTHER

– Invaio Sciences acquired Peptyde Bio, a St. Louis, Mo.-based biotech company discovering and developing novel peptides for agricultural uses. Financial terms were not disclosed. 

FUNDS + FUNDS OF FUNDS

– Canapi Ventures, a Washington, D.C., New York City, and Wilmington, N.C.-based venture capital firm, raised $750 million in its second fund focused on companies in the financial infrastructure, lending and credit payments, real estate technology, cybersecurity, and other sectors. 

– Congruent Ventures, a San Francisco, Calif.-based venture capital firm, raised $275 million in its third fund focused on early stage climate tech companies.