Cleo Capital

Cleo Capital Research Investment Thesis Cleo Capital is a generalist early-stage venture capital fund founded in 2018 by Sarah Kunst. The firm focuses on backing exceptional founders at the earliest stages (pre-seed and seed) with the potential to build multi-billion dollar companies. The firm's investment philosophy centers on backing diverse founders who may be overlooked by traditional venture capital, with a particular emphasis on supporting female founders and scouts. The fund's three primary thesis areas are: Future of Income - Fintech, wealth management, and financial empowerment platforms Complicated Consumer - Consumer-focused software and services solving complex consumer problems Decentralized Enterprise - Blockchain, crypto, and decentralized technologies for enterprise use In late 2024, Cleo Capital expanded its thesis to include a specialized focus on cybersecurity, launching a dedicated cybersecurity accelerator program. Investment Stage and Check Size Cleo Capital specializes in early-stage investments: Primary Stages : Pre-seed and Seed Typical Check Size : $100K - $1M Notable Historical Check : Early investment in Groq (2018, now valued at $6.9B) The firm is particularly known for getting in early with exceptional founders and has demonstrated strong follow-on investing in successful portfolio companies. Recent Activity and Fund Status Cleo Capital has been actively deploying capital with recent notable exits and valuations: Groq (AI chip startup): Valued at $6.9B (October 2025), invested in 2018 KoBold Metals (AI-powered mining): Raised $537M in January 2025, valued at $2.96B Gemini (Blockchain): Portfolio company, backed by Cleo Capital early FalconX (Crypto trading): Portfolio unicorn Recent investments in 2025 indicate the fund remains actively deploying: Plug.vin (electric vehicle infrastructure) - Seed investment, 2025 The fund appears to be between major fund cycles but continues active pre-seed and seed investing. The launch of the cybersecurity accelerator in November 2024 (with $250K standard investment for 7% equity) demonstrates continued innovation in fund structure and thematic investing. Portfolio Highlights Cleo Capital's portfolio includes 60+ investments across a diverse range of sectors: Unicorn/High-Value Exits: Groq (AI infrastructure) - $6.9B valuation KoBold Metals (AI mining) - $2.96B valuation FalconX (Crypto trading) - Unicorn status Gemini (Blockchain) - Unicorn status Notable Consumer Companies: Ellevest (fintech for women) Hill House Home (home goods) Cameo (celebrity video marketplace) Earnin (earned wage access) MasterClass (online education) Levels Health (metabolic health monitoring) Enterprise & Infrastructure: Modern Treasury (payments infrastructure) Forethought (AI customer service) Groq (AI chip manufacturing) Kobold Metals (AI-powered mining) Fintech & Crypto: FalconX (crypto trading) ATOB (revenue-based financing) Plug.vin (EV infrastructure) Cryptosat (satellite blockchain) Other Notable Holdings: Planet Forward (climate tech) Playbook (internal tools) Yumi (AI personal assistant) Hinode (beauty products) Daffy (charitable giving) Disco Goods (sustainable consumer goods) The portfolio demonstrates a strong early-stage thesis with multiple unicorn exits and a diverse range of sectors and founder backgrounds. Team and Leadership Sarah Kunst - Founder & General Partner Founding year: 2018 Background: Previously served as Senior Advisor at Bumble, focused on Bumble Fund (corporate VC) Board experience: Michigan State University Foundation endowment board Recognition: Forbes 30 Under 30, Vanity Fair Future Innovator, Cool Hunting top 25 innovator in tech, Business Insider 30 under 30 Women in Tech, Named to Pitchbook Top Black VC To Watch, Wall Street Journal top woman in VC, National Retail Federation DealmakeHer Expertise: She brings operational understanding of venture capital from both investor and entrepreneur sides Additional roles: Contributing editor at Marie Claire Magazine, coach for Cartier Women's Initiative The fund appears to be a solo GP operation with Sarah Kunst as the primary decision-maker and lead investor. Investment Approach and Decision Process Cleo Capital's approach is characterized by: Lead Tendency : Primarily leads pre-seed and seed rounds, with participation in follow-on rounds for portfolio companies Decision Process : Solo GP structure with Sarah Kunst making investment decisions Founder Preferences : Exceptional founders with strong conviction and unique perspectives Diverse backgrounds and viewpoints Early-stage teams with working prototypes or early traction Founders solving problems they personally understand Particular openness to female founders and underrepresented founder types Warm Introduction : While not explicitly required, warm introductions from existing portfolio founders or investors are preferred Timeline : Typical decision timeline appears to be 2-4 weeks for seed/pre-seed stage Stage and Model Focus Preferred Stages : Pre-Seed, Seed Will occasionally participate in Series A follow-ons for strong portfolio companies Will provide reserves for best-in-class founders Company Types : Software companies with potential for significant scale Tech-enabled consumer businesses Infrastructure and tools Delaware C-corporations Model Preferences : Venture-backable software businesses B2B SaaS Consumer software and services Fintech and payments Blockchain and decentralized systems Climate tech Geographic Focus Based on portfolio composition and headquarters: Primary : San Francisco Bay Area, California Secondary : New York Emerging : National and international reach through scout network and remote-first approach The firm has backed companies globally, reflecting a broader geographic mandate than traditional Bay Area funds. Scout Fund and Female Investor Network In 2019, Cleo Capital raised $3.5M for a specialized scout fund focused on backing female investors and scouts. This unique vehicle: Invests in female scouts who identify and source deals Built from non-traditional sources (journalists, influencers, industry experts) Provides equity upside for successful deal sourcing Reflects Kunst's belief in democratizing venture capital Recent activity suggests this program continues as a key differentiator. Cybersecurity Accelerator (Launched Nov 2024) Cleo Capital launched a remote, 12-week cybersecurity accelerator in late 2024: Standard Investment : $250K for 7% equity Cohort Size : Up to 10 companies per cohort Focus : Cybersecurity startups addressing critical security challenges Timeline : Ongoing applications with rolling review Thesis : Cybersecurity is a crucial and underserved area requiring fresh approaches This signals an evolution from pure generalist investing to thematic focus in strategic areas. Media Profile and Visibility Sarah Kunst and Cleo Capital have significant media presence: Regular commentary on venture capital, diversity, and tech Featured in CNBC, Fox Business, YouTube, and other major outlets Consistent presence at industry events and conferences Active on social media and LinkedIn Contributing editor at Marie Claire Magazine The firm maintains a public-facing approach to both investing and cultural commentary on the tech industry. Decision-Making Framework Based on portfolio composition and public statements: What Cleo Looks For: Strong, unique founder vision Clear understanding of customer/market problem Diverse perspectives and backgrounds Founders solving problems they intimately understand Potential for venture-scale outcomes (multi-billion dollar markets) Ability to execute with limited resources What Cleo Avoids: Me-too businesses without differentiation Unclear unit economics Founders seeking validation over execution Extremely crowded categories with low differentiation Investment Philosophy Summary Cleo Capital represents a new generation of venture capital that combines strong founder-focused investing with an explicit commitment to backing diverse founders and challenging traditional VC gatekeeping. Sarah Kunst's background in both corporate VC and founding gives her credibility with founders, and the fund's portfolio reflects a thesis that great companies can come from anywhere and anyone. The fund's early success with companies like Groq, KoBold Metals, and FalconX demonstrates the quality of founder selection and due diligence, while the breadth of the portfolio (60+ companies) shows a commitment to volume at the earliest stages. The recent addition of a cybersecurity accelerator and continued evolution of the scout fund model suggest the fund is experimenting with new structures and thematic focus areas while maintaining its core early-stage thesis.