Craft Ventures is a San Francisco-based venture capital firm founded in 2017 by David Sacks and Bill Lee. The firm manages over $3.5 billion in assets across four early-stage funds and two growth funds, with 326 portfolio investments including space commerce companies SpaceX and Xona Space Systems.
Craft Ventures was established by founders with prior technology company experience. David Sacks previously served as COO of PayPal and founded Yammer, which Microsoft acquired for $1.2 billion in 2012. Bill Lee contributed experience from Remarq and Big Fish Games.
The firm began with Craft Ventures I, a $350 million fund raised in 2018, followed by subsequent funds including Craft Ventures IV at $712 million and Craft Ventures Growth II at $608 million, both closed in November 2023.
Leadership Spotlight
David Sacks serves as co-founder and general partner, drawing on his experience at PayPal and Yammer. President-elect Donald Trump appointed Sacks as the U.S. artificial intelligence and cryptocurrency czar in December 2024.
Jeff Fluhr joined as general partner in 2018, bringing experience as founder and former CEO of StubHub. Sky Dayton serves as venture partner, contributing experience from founding EarthLink and Boingo Wireless.
Investment Philosophy
Craft Ventures focuses on B2B software companies, particularly Software-as-a-Service (SaaS) and marketplace businesses. The firm's investment approach emphasizes operational efficiency and sustainable growth. Historical data shows average checks of $450,900 with maximum investments reaching $100 million.
The firm concentrates on North American markets while maintaining flexibility for international opportunities. Their co-investment strategy involves partnerships with institutional investors to support larger funding rounds.
Craft Ventures invests in space economy companies through strategic positions in SpaceX and Xona Space Systems. Their space commerce approach focuses on B2B software and infrastructure companies that support space-related activities.
The firm's investment in Xona Space Systems' Series B round contributed to the company's $150 million total funding for positioning, navigation, and timing (PNT) technologies.
Craft Ventures evaluates investments based on technical feasibility and market opportunity. The firm emphasizes unit economics analysis, particularly the "burn multiple" metric for SaaS businesses. Their process typically moves efficiently, leveraging operational expertise to assess team capabilities and business models.
For space and technology investments, the firm conducts technical validation using industry expert networks and advisory relationships.
Portfolio Deep Dive
Craft Ventures' portfolio includes recent investments in Supabase's $200 million Series D, Upwind Security's $100 million Series A, and ParadeDB's Series A.
Space-related investments extend beyond direct aerospace companies to include Anduril Industries, which focuses on defense technology. The firm's marketplace investments include Bird, Airbnb, Instawork, and Vendr.
Craft Ventures provides operational support through a team of senior operators and growth specialists. The firm assists portfolio companies with marketing, sales optimization, and technical architecture. For space commerce investments, this includes helping companies navigate regulatory requirements such as ITAR compliance.
The firm's methodology emphasizes sustainable growth and capital efficiency, providing companies access to specialized expertise before they can hire senior talent independently.
Track Record and Performance
Craft Ventures' portfolio includes 13 companies valued at over $1 billion, with public company investments in Uber, Lyft, Airbnb, Twilio, and Tesla. Early exits include CloudKitchens, Harbor, and Lumina.
The firm has participated in public market transitions for companies including Opendoor, Affirm, and Eventbrite.
Craft Ventures' successful investments typically feature strong unit economics, experienced founding teams, and clear paths to profitability. The firm has increased emphasis on AI-powered solutions through recent investments in Norm AI, Endeavor.ai, and Vooma.
During the 2020-2021 venture capital period and subsequent market correction, the firm maintained consistent investment criteria.
Market Perspective
Craft Ventures emphasizes fundamental business metrics following recent market volatility. David Sacks has advocated for capital efficiency and realistic growth expectations. The firm views current conditions as favorable for investors focused on sustainable business models.
In space commerce, they identify opportunities in software infrastructure that enables space-based services rather than hardware manufacturing.
Craft Ventures continues focusing on B2B software while incorporating generative AI capabilities. Recent investments in cybersecurity platforms like Upwind Security and developer infrastructure companies like Supabase reflect ongoing confidence in foundational technology sectors.craftventures+2
Space-related investment priorities focus on dual-use technologies and software platforms serving both commercial and government markets.
Industry Predictions
Craft Ventures anticipates continued consolidation in venture capital, with emphasis on profitability and unit economics. In space commerce, they expect increased integration between terrestrial and space-based systems.
Entrepreneurs approaching Craft Ventures should emphasize unit economics and profitability paths. The firm values warm introductions through portfolio companies or industry connections while maintaining accessibility through their website.craftventures
Preparation should include detailed financial models demonstrating capital efficiency, competitive analysis, and evidence of product-market fit.
What Captures Their Attention
Craft Ventures' investment patterns show preference for experienced founding teams with startup or enterprise software backgrounds. They focus on companies addressing established markets with innovative approaches rather than creating new categories.
For space-related investments, they seek software solutions and enabling technologies rather than hardware manufacturing.
Entrepreneurs frequently overestimate market size without demonstrating customer validation or sustainable unit economics. Craft Ventures prioritizes realistic market assessments over inflated projections.
In space commerce, entrepreneurs should avoid overemphasizing hardware development without software differentiation or recurring revenue models.
Firm Resources and Connections
Craft Ventures operates from San Francisco and can be reached through craftventures.com. David Sacks participates in the All In Podcast, providing regular insights into investment philosophy and market perspectives.
The firm's industry involvement includes conference speaking, advisory relationships, and thought leadership content on SaaS metrics, marketplace dynamics, and operational efficiency.
IMPORTANT DISCLAIMER: This article is for informational and educational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy, sell, or hold any securities. The information presented is based on publicly available data and should not be relied upon for making investment decisions. All investments carry risk, including the potential loss of principal. Readers should conduct their own research and consult with qualified financial advisors before making any investment decisions. Past performance does not guarantee future results. The authors and publishers are not licensed financial advisors and assume no liability for any financial losses that may result from the use of this information.
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This article was produced with the assistance of A.I.
Editorial Notes
This analysis relies on publicly available information including SEC filings, press releases, and company websites. Investment amounts and portfolio details were cross-referenced across multiple sources including CB Insights, Crunchbase, and company announcements. Website URLs were verified as of September 2025. Some historical performance data and specific return metrics remain proprietary to the firm and limited partners. The space commerce investment thesis is inferred from public investments and statements rather than explicit fund documentation.