Former SpaceX executives launch Interlagos Venture Fund, seeking $550 million in deep tech investments

Insider letter

• Interlagos, a new venture capital firm founded by former senior SpaceX executives, is looking to raise $550 million for its debut fund.
• This first-of-its-kind fund aims to invest in early-stage deep tech startups, with capital deployment ranging from seed to Series B funding rounds.
• The partners themselves have joined the fund and pledged a complementary contribution of 2% from their personal resources.
• Their investment strategy is straightforward and targets an 18-25% stake in the companies they support. The fund’s terms and conditions are in line with industry norms, with a management fee of 2% and a carry structure of 20-25%.

Interlagos, a new venture capital firm founded by former senior SpaceX executives, is reportedly looking to raise $550 million for its debut fund, according to regulatory filings and a pitch deck shared with potential limited partners (LPs). This first-of-its-kind fund aims to invest in early-stage deep tech startups, with capital deployment ranging from seed to Series B funding rounds.

Interlagos is based in El Segundo, California and plans 26 to 32 investments with a target of $550 million. The company is preparing to lead financing rounds and provide ongoing capital as the company grows. The team behind Interlagos includes several high-profile figures from the space technology sector: Achal Upadhyaya, who spent a decade as a senior engineer at SpaceX and later led space and defense investments at Cantos Ventures; Tom Ochinero, a former SpaceX executive responsible for generating over $1 billion in annual revenue; and Spencer Hemphill, the company’s CFO and former chief financial officer at Sequoia.

The partners themselves have committed themselves to the fund and have pledged a complementary contribution of 2% from their personal resources. Their investment strategy is straightforward and targets an 18-25% stake in the companies they support. The fund’s terms and conditions are in line with industry norms, with a management fee of 2% and a carry structure of 20-25%.

Interlagos’ investment thesis is broad and focused on deep tech sectors, although specific areas of interest have not been fully disclosed. Upadhyaya has a track record of early investments in innovative startups, including Neros Technologies (unmanned defense systems) and SoloPulse (quantum mechanics), and also participated in seed rounds for Shinkei Systems and Pilgrim during his time at Cantos.

The venture capital firm’s bold goal reflects confidence in both the team’s experience and the potential of the deep tech market. Although the fund is still in the process of raising capital, sources indicate that an initial close has already occurred.

This venture marks a significant moment for Interlagos as the company seeks to position itself as a leading player in the deep tech investment landscape.