SpaceX Alumni Aim to Raise $550M for First Deep Tech Fund

Former SpaceX employees are spearheading efforts to establish their first deep tech fund, targeting a substantial $550 million in capital. This initiative reflects their ambition to invest in innovative technologies that could significantly impact various industries. With their background in aerospace and cutting-edge advancements, these alumni are poised to drive transformative change in the tech landscape through strategic funding and support for emerging startups.

Interlagos, a venture capital firm founded by former senior leaders from SpaceX, is aiming to secure $550 million for its inaugural venture fund, as revealed in regulatory documents and a confidential presentation shared with potential limited partners (LPs) that TechCrunch has seen.

TechCrunch first reported on the firm’s establishment in April, but little information about its investment strategy has been made public—until now. Based in El Segundo, California, Interlagos is broadly focusing on startups within the “deep tech” space, according to a source familiar with the firm’s intentions. The firm plans to offer funding from the inception stage through Series B, with the targeted $550 million allocated across 26 to 32 investments, according to the presentation.

This ambitious goal for a first-time fund is acknowledged by the team. “We are sized to lead and be persistent capital partners to leading companies,” the pitch deck states.

Although the filing does not specify how much money the partners have raised so far, a source indicates that the firm has achieved an initial close towards the $550 million target. Potential LPs are likely attracted to the strong credentials of the founding team, which includes Achal Upadhyaya, who spent a decade as a senior engineer at SpaceX before managing investments in space and defense at Cantos Ventures; Tom Ochinero, a former senior SpaceX executive who left in March after ten years; and Spencer Hemphill, the firm’s CFO, who previously led finance at Sequoia.

The general partners are also investing their own money—a typical practice for venture capital firms. They have each committed to a 2% general partner contribution, indicating their personal investment in the fund. The remaining fund terms appear to follow industry standards, including 2% management fees and a 20-25% carry, reflecting the percentage of returns the fund will retain, along with a goal of acquiring 18-25% equity stakes in supported startups.

Ochinero, who reported directly to SpaceX president Gwynne Shotwell, was “personally responsible for over a billion dollars of annual revenue” at the company, as stated in a 2023 biography. Upadhyaya has a significant track record in deep tech startups as both an angel investor and venture capitalist. He led initial investments in unmanned defense systems startup Neros Technologies and quantum mechanics startup SoloPulse, as well as seed rounds for Shinkei Systems and Pilgrim during his time at Cantos. His personal investments also include Base Power, composites startup Layup, and Oxide Computer.

Upadhyaya did not respond to TechCrunch’s request for comment by the time of publication.

Deep tech, an umbrella term encompassing sectors like space, manufacturing, robotics, biotech, and AI, has attracted increased venture capital interest in recent years. These companies often require more initial funding and have longer timelines to exit, prompting a rise in specialized funds typically formed by technical partners. If Interlagos successfully raises its full target amount, it would stand out against the recent decline in venture capital, making capital acquisition more challenging. Additionally, it could position the firm to effectively compete with major funds like Founders Fund and Andreessen Horowitz, which have aggressively pursued early-stage deep tech investment opportunities.

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Source: techcrunch‍