Paradox Capital

ActiveVenture Capital

Updated: Dec 5, 2025 ·

Financial History

Total Raised

N/A

Valuation

N/A

Investments Made

Date	Company	Round	Lead Investor(s)	Co-Investor(s)
Aug 1, 2025	Decart	$100.0M Series B	—	Aleph VC, Also Capital, Alumni Ventures, Bedrock Capital, Caffeinated Capital, Daft Capital, Founders Fund, Khosla Ventures, Lux Capital, MizMaa Ventures, Saga, Sequoia Capital, Stellar Capital, The Hit Forge, Virginia Venture Partners, Zeev Capital, Adam Guild, Austin Ogilvie, Baylor Adams, Joao Otavio Oliverio, Justin Mateen, Mattia Astori, Sahin Boydas, Sohila Zadran, Vineet Jain, William Miller
Jul 1, 2025	Armada	$130.0M Venture Round	—	Afore Capital, Also Capital, Alumni Ventures, Caffeinated Capital, Daft Capital, Founders Fund, Lux Capital, Saga, Stellar Capital, The Hit Forge, Virginia Venture Partners, Austin Ogilvie, Joao Otavio Oliverio, Justin Mateen, Kirill Silkin, Mattia Astori, Sahin Boydas, Sohila Zadran, Vineet Jain, William Miller
Jul 1, 2025	Hadrian	$110.0M Series C	—	2048 Ventures, Afore Capital, Also Capital, Alumni Ventures, Andreessen Horowitz, Atomic, Caffeinated Capital, Cherry Ventures, Construct Capital, Countdown Capital, Cubit Capital, Daft Capital, Felicis Ventures, Floodgate, Founders Fund, Lux Capital, One Way Ventures, Picus Capital, Ravelin Capital, Saga, Stash Ventures, Stellar Capital, The Hit Forge, Virginia Venture Partners, Austin Ogilvie, Harry Hurst, Joao Otavio Oliverio, Justin Mateen, Koen Koeppen, Leonardo DiCaprio, Mattia Astori, Rob Meyerson, Sahin Boydas, Sam Altman, Sohila Zadran, Vineet Jain, William Miller
Jul 1, 2025	Varda	$190.0M Series C	—	01 Advisors, 11k Ventures, 8VC, Abstract Ventures, Afore Capital, Also Capital, Alumni Ventures, Andreessen Horowitz, Anorak Ventures, Ballistic Ventures, Bedrock Capital, Caffeinated Capital, Champion Hill Labs, Cubit Capital, Daft Capital, DCM, Drive Capital, E1 Ventures, Floodgate, Founders Fund, General Catalyst, Goat Capital, Khosla Ventures, LGF, Lux Capital, Marlinspike, Next47, Outliers Fund, Prime Movers Lab, Rabben Hood Ventures, Saga, Sequoia Capital, Stellar Capital, The Hit Forge, Virginia Venture Partners, XYZ Venture Capital, Y Combinator, Austin Ogilvie, Emil Lee, Fanny Surjana, Gokul Rajaram, Joao Otavio Oliverio, Joshua Reeves, Justin Mateen, Louis Beryl, Mark Cuban, Mattia Astori, Mircea Pasoi, Natasha Ahmed, Richard Cooperstein, Sahin Boydas, Sohila Zadran, Sri Batchu, Stephen Romanoff, Thomas Tull, Vineet Jain, Vivek Patel, William Miller, Zachary Hargreaves
Jun 1, 2025	Levelpath	$55.0M Series B	—	Adapt Ventures, AirAngels, Alumni Ventures, Authentic Ventures, Battery Ventures, Benchmark, BoxGroup, Browder Capital, Capital Factory, CapitalX, Fifth Wall, Foundation Capital, Infinite Niches, Kepler Operator’s Fund, NextView Ventures, Not Boring Capital, Offline Ventures, Pareto Holdings, Predictive VC, Redpoint Ventures, SRB Ventures, Thirty Five Ventures, Uncork Capital, Weekend Fund, Adam Guild, Akshay Kothari, Arash Ferdowsi, Cory Levy, Priyank Chandra, Quinn Slack, Rich Miner, Scot Wingo, Siqi Chen, Suhail Doshi
Jun 1, 2025	Definely	$30.0M Series B	—	Adapt Ventures, Alumni Ventures, Authentic Ventures, BoxGroup, Browder Capital, Capital Factory, CapitalX, Fifth Wall, Foundation Capital, Infinite Niches, Kepler Operator’s Fund, NextView Ventures, Not Boring Capital, Octopus Ventures, Offline Ventures, Pareto Holdings, Predictive VC, Raine Ventures, Redpoint Ventures, SRB Ventures, Systemiq Capital, Thirty Five Ventures, Uncork Capital, Adam Guild, Claire Hughes Johnson, Cory Levy, Priyank Chandra, Quinn Slack, Rich Miner, Scot Wingo
May 1, 2025	Wander	$50.0M Series B	—	Adapt Ventures, Alt Capital, Alumni Ventures, Authentic Ventures, BoxGroup, Browder Capital, Capital Factory, CapitalX, Clear Ventures, Fifth Wall, Foundation Capital, Founders Fund, FPV Fund, FTX Ventures, Infinite Niches, Kepler Operator’s Fund, Meritech Capital Partners, Mischief Venture Capital, NextView Ventures, Not Boring Capital, Offline Ventures, Pareto Holdings, Predictive VC, Prosperity7 Ventures, Redpoint Ventures, Saga, SRB Ventures, Summit Partners, TCV, The Hit Forge, Thirty Five Ventures, Trinity Ventures, Uncork Capital, Adam Guild, Cherian Mathew, Christina Cacioppo, Cory Levy, Dharmesh Shah, Dylan Field, Fidji Simo, Immad Akhund, Jason Lemkin, Jonathan Neman, Joshua Reeves, Julian Shapiro, Justin Mateen, Max Mullen, Parker Conrad, Priyank Chandra, Quinn Slack, Rich Miner, Scott Belsky, Scot Wingo, Sean Rad, Siqi Chen
Feb 1, 2025	Lambda	$480.0M Series D	—	Also Capital, Alumni Ventures, Avalanche VC, Blockchain Capital, Caffeinated Capital, Daft Capital, Eclipse Ventures, FirstHand Alliance, Founders Fund, Greylock, Initialized Capital, Innovation Endeavors, Invariantes Fund, K2 Global, Lux Capital, Saga, Stellar Capital, The Hit Forge, Trajectory Ventures, Virginia Venture Partners, Y Combinator, Adam D'Angelo, Amjad Masad, Austin Ogilvie, Bob Young, Georges Harik, Greg Brockman, Jeff Bezos, Jeff Hammerbacher, Joao Otavio Oliverio, Justin Mateen, Lukas Biewald, Mattia Astori, Sahin Boydas, Sohila Zadran, Vineet Jain, William Miller
Jan 1, 2025	Qumis	$2.0M Seed	—	Also Capital, Alumni Ventures, Caffeinated Capital, Daft Capital, Founders Fund, Lux Capital, Saga, Stellar Capital, The Hit Forge, Virginia Venture Partners, Austin Ogilvie, Joao Otavio Oliverio, Justin Mateen, Mattia Astori, Sahin Boydas, Sohila Zadran, Vineet Jain, William Miller
Nov 1, 2024	Claros	$10.0M Seed	—	Also Capital, Alumni Ventures, Caffeinated Capital, Daft Capital, Founders Fund, Lux Capital, Saga, Stellar Capital, The Hit Forge, Virginia Venture Partners, Austin Ogilvie, Joao Otavio Oliverio, Justin Mateen, Mattia Astori, Sahin Boydas, Sohila Zadran, Vineet Jain, William Miller
Nov 1, 2024	Wordware	$30.0M Seed	—	10100, 6th Man Ventures, Acton Capital Partners, Adjacent, Albion VC, Alumni Ventures, Amplify Partners, Angel investor, Atomico, Audrey Capital, Blossom Capital, BlueRun Ventures, Broadway Angels, Chalfen Ventures, Climate Capital, Color Capital, Cool Climate Collective, Craft Ventures, Day One Ventures, Decibel Partners, Divergent Capital, DocuSign, Double Down, DST Global, Embedded Ventures, Emergence Capital, Essence VC, Aniq Kassam, Felicis Ventures, Felix Capital, FirstMark Capital, Flexcap, Flex Capital, Flybridge Capital Partners, Friends & Family Capital, Frontline Ventures, Fusion Fund, Ganas Ventures, General Catalyst, Global Founders Capital, Gradient Ventures, Great Oaks Venture Capital, Greenoaks Capital, Hummingbird Ventures, ICONIQ Capital, Indicator Ventures, Insight Partners, IVP, Kohala Ventures, La Famiglia, Lakestar, Lightspeed Venture Partners, Listen, Lockheed Martin Ventures, Matrix, Menlo Ventures, Meritech Capital Partners, Moxxie Ventures, Jonathan Golden, OpenCapital.vc, Openspace Ventures, Otherwise Fund, Paradigm, Partners Resolute, Pioneer Fund, Polymath Capital Partners, Prototype Capital, Radical Ventures, Red Beard Ventures, Runa Capital, Scribble Ventures, Seed Club Ventures, Seven Seven Six, Sherpalo Ventures, Shrug Capital, Spark Capital, Summit Partners, SV Angel, Web Smith, Techstars, The Hit Forge, Theory Forge Ventures, Todd and Rahul's Angel Fund, Trammell Venture Partners, Treble Capital, Tribe Capital, Unlock Venture Partners, Untapped Capital, Valhalla Ventures, Vibe Capital, Y Combinator, Adam D'Angelo, Alex Pattis, Amjad Masad, Andrew Gazdecki, Andrew Gluck, Andrew Steinwold, Azeem Azhar, Balaji Srinivasan, Ben Lang, Ben Tossell, Bob Young, Casey Neistat, David Peterson, Dharmesh Shah, Doug Monro, Elad Gil, Eric Ries, Gina Bianchini, Girish Mathrubootham, Gokul Rajaram, Jaime Schmidt, James Isilay, James Meekings, Jean Charles Samuelian, Jeff Hammerbacher, Jen Rubio Butterfield, Julia DeWahl, Kevin Stumpf, Kevin Weil, Kulveer Taggar, Kyle Vogt, Ligaya Tichy, Mark Chou, Mark Pincus, Mathilde Collin, Matt Mickiewicz, Moshe Lifschitz, Nkechi Iregbulem, Noah Sidman-Gale, Paul Graham, Paul Stahura, Peter Hunn, Peter Kazanjy, Ran Makavy, Sahin Boydas, Sam Corcos, Scott Belsky, Sergei Anikin, Sherry Coutu, Siqi Chen, Spencer Kimball, Stephen Cole, Thijn Lamers, Tim Ferriss, Tony Jamous, Vishal Rao, Will Brooks, Will Martin, Yann LeCun, Zachary Sims, Zach Segal
Oct 1, 2024	Varda	$160.0M Series C	—	Also Capital, Alumni Ventures, Caffeinated Capital, Daft Capital, Founders Fund, Hanaco Ventures, Lux Capital, Saga, Stellar Capital, Techstars, The Hit Forge, Tribe Capital, Virginia Venture Partners, Austin Ogilvie, Joao Otavio Oliverio, Justin Mateen, Mattia Astori, Sahin Boydas, Vineet Jain, William Miller
Sep 1, 2024	Blue Sky Robotics	$75K Seed	—	Adapt Ventures, Alumni Ventures, Authentic Ventures, BoxGroup, Browder Capital, Capital Factory, CapitalX, Fifth Wall, Foundation Capital, Infinite Niches, Kepler Operator’s Fund, NextView Ventures, Not Boring Capital, Offline Ventures, Pareto Holdings, Predictive VC, Redpoint Ventures, SRB Ventures, Thirty Five Ventures, Uncork Capital, Adam Guild, Cory Levy, Priyank Chandra, Quinn Slack, Rich Miner
Aug 1, 2024	Ark Labs	$3.0M Seed	—	Draper Associates, Global Founders Capital, Polygon, Trammell Venture Partners, Treble Capital, Unruly Capital, Balaji Srinivasan, Roneil Rumburg, Stephen Cole
Jul 1, 2024	Halo Industries	$80.0M Series B	—	11, 11k Ventures, Accel, Addition, Alumni Ventures, Applied Ventures, Avalon Ventures, Craft Ventures, Dimension Capital, Founder Collective, Founders Fund, Haun Ventures, ICONIQ Capital, Innovation Endeavors, In-Q-Tel, Jetstream, Khosla Ventures, LGF, Lockheed Martin Ventures, Long Journey Ventures, Primer Sazze Partners, Sequoia Capital, Starframe Capital, The Hit Forge, Trajectory Ventures, Walden International, XStarPartners, Amjad Masad, Anna Yuan, Bradley Horowitz, David Mytton, Guillaume Lestrade, Julie Zhuo, Oleg Rogynskyy, Omar El-Ayat, Sahin Boydas, Sam Altman, Saturnin Pugnet, Tobias Lutke, Tony Xu, Young Song
Jul 1, 2024	Echo Chunk AI	$1.0M Seed	—	10100, 1confirmation, Abstract Ventures, Kevin Hartz, Andreessen Horowitz, Brainchild, Divergence Ventures, Era Ventures, Founders Fund, General Catalyst, Lerer Hippeau, New Form Capital, Pear VC, Polychain Capital, Robot Ventures, Sound Ventures, The Hit Forge, Thrive Capital, Waverley Capital, Balaji Srinivasan, Diego Berdakin, Dylan Field, Evan Moore, Immad Akhund, Sahin Boydas, Stani Kulechov, Stanley Tang, Tony Xu, Vitalik Buterin
Apr 1, 2024	FloQast	$100.0M Series E	—	11, 9Yards Capital, Accel, Addition, Avalon Ventures, Craft Ventures, Dimension Capital, Founder Collective, Founders Fund, Haun Ventures, ICONIQ Capital, In-Q-Tel, Jetstream, Khosla Ventures, LGF, Long Journey Ventures, Meritech Capital Partners, Norwest Venture Partners, Polaris Partners, Primer Sazze Partners, Sequoia Capital, The Hit Forge, Toba Capital, Andy Cohen, World Innovation Lab, XStarPartners, Amjad Masad, Anna Yuan, Bradley Horowitz, David Mytton, Guillaume Lestrade, Julie Zhuo, Mo El-Bibany, Oleg Rogynskyy, Omar El-Ayat, Sam Altman, Tobias Lutke, Tony Xu, Young Song
Apr 1, 2024	Varda	$90.0M Series B	—	11k Ventures, 8VC, Abstract Ventures, Also Capital, Alumni Ventures, Andreessen Horowitz, Atomic, Ballistic Ventures, Caffeinated Capital, Cubit Capital, Daft Capital, DCM, Drive Capital, E1 Ventures, Floodgate, Founders Fund, General Catalyst, Goat Capital, Khosla Ventures, LGF, Lux Capital, Next47, Prime Movers Lab, Saga, Sequoia Capital, Stellar Capital, The Hit Forge, Virginia Venture Partners, Y Combinator, Austin Ogilvie, Emil Lee, Gokul Rajaram, Joao Otavio Oliverio, Joshua Reeves, Justin Mateen, Louis Beryl, Mark Cuban, Mattia Astori, Natasha Ahmed, Sahin Boydas, Sam Altman, Sohila Zadran, Sri Batchu, Thomas Tull, Vineet Jain, Vivek Patel, William Miller, Zachary Hargreaves
Apr 1, 2024	Draftboard	$4.0M Seed	—	Also Capital, Alumni Ventures, Animo Ventures, Asylum Ventures, Caffeinated Capital, Daft Capital, Founder Collective, Founders Fund, Ground Up Ventures, Lux Capital, Saga, Stellar Capital, The Hit Forge, Twelve Below, Virginia Venture Partners, Austin Ogilvie, Joao Otavio Oliverio, Justin Mateen, Mattia Astori, Sahin Boydas, Sohila Zadran, Vineet Jain, William Miller
Mar 1, 2024	Cognition	$21.0M Series A	—	8VC, AIX Ventures, Andreessen Horowitz, Conviction Partners, Engineering Capital, Era Ventures, Chris Kelley, Founders Fund, Modern Venture Partners, NEO, Andrew Schoen, Greg Papadopoulos, Paradigm, Pear VC, Preston-Werner Ventures, Stellar Capital, TriplePoint Capital, UpHonest Capital, Arash Ferdowsi, Elad Gil, Eric Wu, Evan Moore, Immad Akhund, John Collison, Karim Atiyeh, Stanley Tang, Tony Xu
Feb 1, 2024	Lambda	$320.0M Series C	—	Also Capital, Alumni Ventures, Caffeinated Capital, Daft Capital, Founders Fund, Invariantes Fund, K2 Global, Lux Capital, Saga, Stellar Capital, The Hit Forge, Trajectory Ventures, Virginia Venture Partners, Y Combinator, Adam D'Angelo, Austin Ogilvie, Georges Harik, Greg Brockman, Jeff Hammerbacher, Joao Otavio Oliverio, Justin Mateen, Lukas Biewald, Mattia Astori, Sahin Boydas, Sohila Zadran, Vineet Jain, William Miller
Feb 1, 2024	Galileo AI	$4.0M Seed	—	11, Accel, Addition, Avalon Ventures, Benchmark, C2 Investment, Caffeinated Capital, Coatue, Craft Ventures, Dimension Capital, Founder Collective, Founders Fund, Haun Ventures, ICONIQ Capital, In-Q-Tel, Jetstream, Khosla Ventures, LGF, Long Journey Ventures, No Label Ventures, Operator Collective, Primer Sazze Partners, Project A, Sequoia Capital, The Hit Forge, XStarPartners, Amjad Masad, Anna Yuan, Bradley Horowitz, Chris Cheng, David Mytton, Felipe Navio, Guillaume Lestrade, Oleg Rogynskyy, Omar El-Ayat, Sam Altman, Scott Belsky, Tobias Lutke, Tony Xu, Young Song
Feb 1, 2024	Hadrian	$92.0M Series B	—	11k Ventures, 1435 Capital Management, 2045 ventures, 2048 Ventures, 305 Ventures, 8090 Industries, 8VC, Afore Capital, Also Capital, Altai Ventures, Alumni Ventures, Andreessen Horowitz, Atomic, Ballistic Ventures, Better Tomorrow Ventures, Bolt, Caffeinated Capital, Cherry Ventures, Construct Capital, Countdown Capital, Cubit Capital, Daft Capital, Drive Capital, E1 Ventures, Felicis Ventures, Floodgate, Founders Fund, General Catalyst, Goat Capital, Good Growth Capital, Lux Capital, One Way Ventures, Picus Capital, Prime Movers Lab, Ravelin Capital, Saga, SpaceFund, Stash Ventures, Stellar Capital, Techstars, The Hit Forge, Tribe Capital, Virginia Venture Partners, Y Combinator, Zigg Capital, Alex Adelman, Austin Ogilvie, Dylan Taylor, Emil Lee, Gokul Rajaram, Harry Hurst, Joao Otavio Oliverio, Joshua Reeves, Justin Mateen, Kirill Silkin, Koen Koeppen, Leonardo DiCaprio, Louis Beryl, Mark Cuban, Mattia Astori, Natasha Ahmed, Rob Meyerson, Sahin Boydas, Sam Altman, Sohila Zadran, Sung ho Choi, Thomas Tull, Vineet Jain, Vivek Patel, William Miller, Zachary Hargreaves
Feb 1, 2024	Jam	$9.0M Series A	—	Active Capital, Addition, Afore Capital, AIX Ventures, Andreessen Horowitz, Backstage Capital, Banana Capital, B Capital Group, Bedrock Capital, Bessemer Venture Partners, BoxGroup, C2 Investment, CapitalX, Color Capital, Craft Ventures, Cyphr VC, DTCP, Electric Capital, First Round Capital, Flex Capital, Innovation Endeavors, IVP, LGF, Lightspeed Venture Partners, LOI Venture, Long Journey Ventures, Maven Ventures, Dan Cahana, Robin Li, Notable Capital, Preston-Werner Ventures, Primary Venture Partners, Prototype Capital, Rising Tide Partners, SaaSholic Fund, Shaan's All Access Fund, Sommet AB, The Club, The Hit Forge, Tiger Global Management, Two Sigma Ventures, Vibe Capital, Weekend Fund, Y Combinator, Alex Lieberman, Amjad Masad, Anthony Pompliano, Balaji Srinivasan, Ben Tossell, Bob Muglia, Chris Herd, Dharmesh Shah, Dylan Field, Greg Isenberg, Guillermo Rauch, Ilya Golubovich, Immad Akhund, Jaime Schmidt, Jeff Bezos, Julian Shapiro, Justin Welsh, Kyle York, Louis Beryl, Mark Goines, Mattia Astori, Moshe Lifschitz, Musaab Hakami, Peter Sonsini, Sahil Lavingia, Sahin Boydas, Sam Parr, Shane Neman, Stanley Druckenmiller, Tim Griffin, Tobias Lutke, Yann LeCun, Zack Kanter
Sep 1, 2023	Levelpath	$30.0M Series A	—	Adapt Ventures, Alumni Ventures, Authentic Ventures, BoxGroup, Browder Capital, Capital Factory, CapitalX, Fifth Wall, Foundation Capital, Infinite Niches, Kepler Operator’s Fund, NextView Ventures, Not Boring Capital, Offline Ventures, Pareto Holdings, Predictive VC, Redpoint Ventures, SRB Ventures, Thirty Five Ventures, Uncork Capital, Adam Guild, Cory Levy, Priyank Chandra, Quinn Slack, Rich Miner, Scot Wingo

Financial History

Total Raised

N/A

Valuation

N/A

Leadership Team

Key people at Paradox Capital.

Kyle Tibbitts

Investor

Leadership Team

Key people at Paradox Capital.

Kyle Tibbitts

Investor

Deep Dive

High-Level Overview

Paradox Capital is a US-based private equity firm focused on providing pre-seed funding to early-stage startups, particularly targeting founders outside Silicon Valley who are often overlooked by traditional venture capital. Their mission is to empower these "outsider" founders by offering not only capital but also direct access to top-tier product, marketing, design, and operational expertise from Silicon Valley, enabling them to build successful companies anywhere in the U.S. The firm invests in resourceful and resilient founders with strong storytelling and vision, aiming to support startups across diverse sectors through early capital and strategic guidance[1][2].

Origin Story

Founded recently with a subscription start date in October 2025, Paradox Capital was created to address the funding gap for promising founders beyond the traditional tech hubs. The fund is led by partners who emphasize active involvement, often joining founding teams in advisory or operational roles, as seen with portfolio companies like Wander, where the fund’s partner became CMO. This hands-on approach reflects the firm's evolution from a pure capital provider to an active builder and partner in the startup journey[2].

Core Differentiators

Unique Investment Model: Focus on pre-seed investments in underrepresented founders outside Silicon Valley, combining capital with operational support.
Network Strength: Leverages deep connections to Silicon Valley experts in product, marketing, design, and operations to provide founders with high-value mentorship and resources.
Track Record: Early investments in companies like OpenStore, Pipe, Doorvest, MicroAcquire, Primer, and Wander demonstrate a pattern of backing innovative startups at their inception.
Operating Support: Active involvement beyond funding, including advisory roles and hands-on help in marketing and growth strategies, differentiates Paradox Capital from typical passive investors[2].

Role in the Broader Tech Landscape

Paradox Capital rides the growing trend of decentralizing startup ecosystems beyond Silicon Valley, recognizing that innovation and entrepreneurial talent exist nationwide. The timing is critical as remote work and digital infrastructure improvements enable founders to build scalable companies from diverse geographies. By bridging the gap between outsider founders and Silicon Valley expertise, Paradox Capital helps democratize access to capital and knowledge, influencing the broader ecosystem towards more inclusive and geographically distributed innovation[2].

Quick Take & Future Outlook

Looking ahead, Paradox Capital is well-positioned to capitalize on the increasing demand for early-stage funding outside traditional tech hubs. Their model of combining capital with expert operational support aligns with trends favoring founder-centric, hands-on venture partners. As they grow their portfolio and deepen their network, their influence may expand, potentially shaping a more diverse and resilient startup ecosystem across the U.S. The firm’s success will likely hinge on continuing to identify resilient founders with compelling visions and supporting them with tailored resources that accelerate growth beyond initial funding[2].

Sources

High-Level Overview

Origin Story

Core Differentiators

Unique Investment Model: Focus on pre-seed investments in underrepresented founders outside Silicon Valley, combining capital with operational support.
Network Strength: Leverages deep connections to Silicon Valley experts in product, marketing, design, and operations to provide founders with high-value mentorship and resources.
Track Record: Early investments in companies like OpenStore, Pipe, Doorvest, MicroAcquire, Primer, and Wander demonstrate a pattern of backing innovative startups at their inception.
Operating Support: Active involvement beyond funding, including advisory roles and hands-on help in marketing and growth strategies, differentiates Paradox Capital from typical passive investors[2].