Cardinal Tech Fund
An investment fund with SEP community as investors and stakeholders
What?
Launch an investment fund leveraging the Stanford Executive Program (SEP) community – a powerful, expansive network of 300+ professionals who will be investors and stakeholders in the fund.
Why?
There is an opportunity to create a legacy for the SEP class of 2024 by launching this fund to capture and capitalise on the value that has been created by the strong community and connections this class has forged. This vehicle is a focused effort to capture that value.
Objective
The fund will be dynamic, flexible, and opportunistic. An investment vehicle that can fund and accelerate attractive investment opportunities coming from i) within the SEP network, ii) Reaction, a Stanford alumni venture firm and (iii) the broader Stanford ecosystem and its network. Capital will be deployed appropriately, considering the estimated size of the fund. Given its deal source, it will be a global venture capital fund, but given the closeness to Stanford a US overweight allocation may be likely.
The fund will mainly invest in growth stage companies (Seed, Series A, Series B, and Growth Equity). It will focus on Technology, Health, and Environment sectors. These areas are not only supported by strong secular trends, but also major global challenges and areas where the SEP network and Stanford University have recognised expertise.
On 1 October 2024, we will launch the Cardinal Tech Fund Fund for the Stanford Executive Program class of 2024. The fund aims to access ventures with high performance potential that align with its network’s ability and expertise to scale growth, so as to provide the highest potential return to its Limited Partners.
The main goal is to build a community that can leverage, support, and accelerate top-tier early-stage ventures. This community will include over 200 senior executive leaders from 51 countries. These are senior operators and finance executives that have built and scaled companies, products, and services – CEOs, CTOs, CMOs, GTM experts, finance and legal experts, across many industry verticals.
They will actively support investments by providing access to opportunities, evaluating prospects, and opening doors for founders to scale value.
We are partnering with Reaction, benefiting from their investment model, alumni community and network. Reaction launched in 2019, with 150 partners in 40 countries. They are a global community of Stanford Alumni entrepreneurs, investors and executives who share a vision for a world where innovation can meaningfully improve more lives in less time. Their first fund was launched in 2020 with a focus on health technology and climate innovation. Their second fund, Climate Innovation, was launched in 2023. To date, Reaction manages ~$20m in assets. More about the team can be found here: https://www.reaction.global
This partnership provides access to deal flow, follow-on investments/co-investments, and infrastructure support. Joining forces with Reaction, we will be creating the biggest Stanford alumni venture network. We will position ourselves in such a way that we get early access to top tier ventures from within Stanford and we will have the strongest Stanford alumni network out there to support entrepreneurs. This will be incredibly powerful for an entrepreneur - the PR alone will be immensely powerful.
Fund Investment Purpose:
The Fund will be formed for the purpose of raising capital to acquire, hold, manage, sell, trade, and distribute securities of portfolio companies and expects the securities to produce income and capital gains therefrom. The securities may be issued by portfolio companies in a variety of industries in a variety of geographic jurisdictions and may be in the form of equity, debt, or other investment structures. The Portfolio Companies may have little or no current revenues or earnings.
Fund Investment Framework/Thesis
Our venture capital fund focuses on early to growth-stage technology-enabled companies. By leveraging the deep industry knowledge of our SEP network, we provide more than just capital—we offer strategic insights, operational support, and access to invaluable connections. We target industries where technology acts as a significant enabler of transformation. Our aim is to find startups that can quickly capture market share and build a defensible position through innovation and strong execution. By focusing on sectors where our SEP classmates have deep expertise, we can better identify high-potential opportunities and mitigate risks associated with new ventures.
Key Investment Criteria
Exceptional Founders: We invest in entrepreneurs with the resilience and leadership to scale innovative solutions.
Scalable Technology: We prioritise companies with robust, scalable tech that addresses significant market needs, across any industry where our SEP network's expertise can add significant value.
Market Potential: We target industries with rapid growth potential, ensuring our portfolio companies can capture market share and secure attractive exit opportunities.
Collaborative Investing: We only invest when we are not the sole venture capital firm involved. This approach ensures shared risk, enhances the support network for portfolio companies, and fosters collaboration with other experienced investors.
Our SEP network gives us a unique edge, enabling us to accelerate the growth of our portfolio companies. This network driven approach ensures we are active partners, not passive investors, enhancing our companies’ chances of success and positioning our fund for strong returns.
In summary, we invest in technology driven companies with high growth potential, using SEP expertise and a collaborative investment approach to scale and secure exit outcomes.
Fund Limits
Target 20-25 portfolio companies
Estimated final ticket sizes to be $150,000 to $500,000
The fund will only invest when another institutional investor is taking the lead in the round as a core principle.
The fund will not invest more than 10% of committed capital in any one portfolio company
The fund will invest globally
Target IRR, Fund and Fee Structure
20%+ Target Return
2% Management Fee
20% Carried Interest (with 8% hurdle rate)
Delaware limited partnership
Launch Date and Call Schedule
1 January 2025
Two year call schedule
Five year investment cycle
Ten year fund life (+2 years prolongation if needed)
Investors Common Management Company
An LLC company that houses the LPA Cardinal Tech Fund. The board of directors of the Investors Common management company has the sole right to appoint Investment Committee (IC) members, Managing Partners (MP) and General Partners (GP) of the fund. The Board of Directors will have governance oversight.
Cardinal Tech Fund
An LPA will be used for the fund. The entity will house all the Limited Partners, Managing Partner, General Partners, the Investment Committee members, advisory members, and any member that will be compensated for their efforts.
Two members of SEP '24 class will be invited to the Investment Committee as rotating voting members based on industry knowledge and / or geographically local knowledge.
Two members of SEP '24 will be invited to the Investment Committee as rotating voting members based on industry knowledge and / or geographically local knowledge.
Champion team members
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Anna Beatriz Flecha de Lima
Brazil
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Sandra Kurmann
Switzerland
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Alaa Dwekat
United Arab Emirates
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Eskil Koffeld
Norway
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Gil Karsten
Brazil
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Kornél Jellen
Switzerland
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John Benatouil
Mauritius
FAQs
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The SEP '24 Investment Fund is a venture capital fund launched by the Stanford Executive Program (SEP) 2024 community. It aims to leverage the expansive network of over 200 professionals from SEP 2024, who will be both investors and stakeholders in the fund. The fund focuses on investing in early to growth-stage technology-enabled companies.
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The fund was established to create a lasting legacy for the SEP class of 2024. It capitalizes on the strong community and connections within the class to fund and accelerate high-potential investment opportunities. The fund targets ventures within the SEP '24 network, Reaction (a Stanford Alumni venture firm), and the broader Stanford ecosystem and beyond.
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The primary objective of the SEP '24 fund is to deploy capital opportunistically, focusing on growth-stage companies in technology, health, environment. By leveraging the expertise of the SEP '24 network, the fund aims to deliver strong returns to its Limited Partners (LPs) while fostering a community that supports and accelerates early-stage ventures.
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The fund will be managed by the LLC Investors Commons Management Company, which houses the LPA Reaction SEP '24 Fund. The Board of Directors will have governance oversight, appointing a managing partner, general partners, and investment committee members. The business, operational, and stakeholder management of the fund will be managed by the managing partner. Investment deal flow, due diligence will be managed by the managing and general partners. The Investment Committee (IC) will review and vote on investment proposals.
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The fund will invest in technology-driven companies with high growth potential, using SEP expertise and a collaborative investment approach to scale and secure exit outcomes.
The fund will focus on key sectors (but not limited to):
Technology
Health Technology
Environmental Sustainability
These sectors are chosen for their alignment with major global issues and the expertise within the SEP '24 class and Stanford University.
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Depending on the size of the fund, the fund will invest globally in 10-15 portfolio companies, with ticket sizes ranging from $150,000 to $500,000. The fund will primarily invest when another institutional investor is leading the round. Additionally, 10%-15% of the capital will be earmarked for SEP '24 investments.
If there isn't a lead institutional investor, the general partners will find one. Should an institutional investor be unwilling to invest, the feedback will be given to the investment committee for a well-informed decision.
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The investment thesis focuses on leveraging the deep industry knowledge of the SEP '24 network to drive scalable growth in technology-enabled companies. The fund prioritizes companies with:
Exceptional Founders
Scalable Technology
High Market Potential
Collaborative Investment Opportunities
The fund aims to be an active partner, not a passive investor, providing strategic insights, operational support, and access to valuable connections.
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The fund targets a 20%+ internal rate of return (IRR) with a 2% management fee and a 20% carried interest (with an 8% hurdle rate). It will operate as a Delaware limited partnership with a ten-year fund life, plus a possible two-year extension.
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No, the SEP '24 Investment Fund is an initiative established by the Stanford Executive Program class of 2024. The class acknowledges the network of Stanford alumni fostered by Reaction and has elected to collaborate with Reaction. Nevertheless, the SEP '24 Investment Fund shall operate independently, possessing its own management company and distinct legal entity.
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The fund will be structured as a Delaware limited partnership. The LLC Investors Commons Management Company will manage the fund, while the Board of Directors will oversee governance.
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The Investment Committee will review investment proposals, challenge ideas, and vote on whether to proceed with investments. The IC will evaluate proposals prepared by the General Partners. Decisions will require a majority vote, with no more than two dissenting votes.
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The partnership with Reaction Alumni Venture Fund provides access to a robust deal pipeline, follow-on investments, co-investments, and infrastructure support. By aligning with Reaction, the SEP '24 fund will tap into one of the largest and most powerful Stanford Alumni Venture networks, offering early access to top-tier ventures and significant PR benefits for entrepreneurs. Partnering with Reaction, will also significantly reduce the operational costs of the fund.
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The SEP '24 Investment Fund is set to launch on 1 October 2024, with a five-year investment cycle and a ten-year fund life. The fund will follow a two-year call schedule with the initial capital call being 10%, followed by subsequent capital calls of 30%.
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The Board of Directors includes:
Lionel Scotto le Massese (Chair)
Florian Funk
Prerana Vaidya
Stella Zhou
The Investment Committee will include:
Henko Haasbroek (Managing and General Partner)
Lei Qi (General Partner)
Art Wong (General Partner)
Stella Zhou (Investment Committee)
Florian Funk (Investment Committee)
Martha de Sa (Investment Committee)
Rotating voting members from SEP '24 will also participate in the IC based on their expertise.
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Despite the time zone difference, Henko and Lei can work effectively by leveraging their 6-hour daily overlap for communication. Henko in London will handle tasks in the morning, while Lei in the Bay Area can continue in the afternoon, allowing for near-continuous progress.
They will hold weekly partner meetings to discuss fund strategy, deal flow, market insights, portfolio updates, and internal operations, with frequent daily communication for new opportunities or strategic decisions.
Both have extensive experience working across multiple time zones. Henko has spent the past decade working with global clients across different time zones, while Lei has been managing Investments and fund operations between the US, Europe, and Asia in her current role at Alliance Ventures.
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Quarterly Reports:
Fund Performance: Overview of key metrics like Internal Rate of Return (IRR) and updates on capital calls and distributions.
Portfolio Updates: Brief summaries of each portfolio company’s progress, including major milestones, financial performance, and any challenges.
Investment Activity: Information on new investments, follow-on investments, and any exits.
Annual General Meeting (AGM):
Fund Overview: A detailed review of fund performance, strategy, and future outlook.
Portfolio Highlights: Updates on key portfolio companies, sometimes with presentations from company leaders.
LP Q&A: Opportunity for LPs to ask questions and provide feedback.
Ad-Hoc Updates:
Significant Events: Informal updates on major developments like exits, new deals, or strategic changes.
Tax Reporting:
Tax Forms (K-1): Sent annually to LPs for tax purposes.
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While the fund's primary focus is on generating returns, there is potential to include charitable contributions. For example, fund profits could be donated to a non-profit or scholarship fund after returning capital to LPs. Alternatively, if LPs agree upfront, a portion of the profits could be earmarked for donation before final distribution.
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Management Fees:
These will cover operational expenses, including payments to Reaction for infrastructure support and funding a full-time GP for our fund.
Carried Interest:
The board will determine carry allocation at a later point in time based on individual performance contributions to the fund. However it will be used to compensate select GP members, IC members, Reaction and to fund charitable causes.
For questions please contact Henko Haasbroek at henko@reactiongp.com
