21-Year-Old VC Koko Xs Secures $17.5 Million for Solo Fund, Defying Industry Trends

Riley King

Riley King

December 13, 2024 · 4 min read
21-Year-Old VC Koko Xs Secures $17.5 Million for Solo Fund, Defying Industry Trends

Koko Xs, a 21-year-old math major, has defied industry trends by securing $17.5 million in committed capital for his first solo venture capital fund, despite being just a year out of college. This impressive feat is all the more remarkable given the current challenges facing venture capital firms, with many struggling to land deals and seeing returns take a decade to mature.

Xs' journey to becoming a VC began when he cold-emailed 3,000 PhDs, including founders, operators, and VCs, which led him to connect with Lux Capital venture partner Ian Peikon and eventually land a job as an investment analyst at Lux. After a few months, he joined Mach Industries as head of growth, where he was part of the team that secured a $79 million series A round. However, he soon realized that operating wasn't for him, and he began fundraising for his solo fund in April.

Despite being a solo fund, Xs has already secured an impressive list of backers, including Marc Andreessen, Chris Dixon, Kevin Hartz, Josh Wolfe, Lux Capital, and fund of funds Nomads. He has also invested in several hot startups, including defense tech firm Mach Industries and AI chip maker Etched. Xs' strategy is to focus on deep tech companies and "deep infrastructure" companies that may not be traditional hard tech but index to a particular market trend.

Xs' approach is distinct from many of his peers, who often invest in gimmicky, component-based deep tech companies. Instead, he's looking for companies with extreme potential returns, citing the example of investing in Microsoft in the 1970s or 1980s, which would have given an investor exposure to essentially all PC OEMs at the time. He believes that small funds like his can use boutique strategies to win deals, despite the challenges facing emerging solo funds.

In the immediate term, Xs is taking an aggressive approach with his fund, aiming to write checks to fifteen companies that would make up 80% of the fund's capital. Through those positions, he's aiming to secure 1% of a $10 billion company. He's looking for founders who are "out of distribution," meaning they have endured extreme hardship, are very neurodivergent, or take an "activist approach" to existential problems.

In the longer term, Xs has even more ambitious plans than just venture investing. He wants to grow out a number of business lines, including venture index funds, providing venture credit, and rolling up companies with a buy-and-build model. With his impressive start, it will be interesting to see how Xs' fund performs in the coming years.

Xs' success is a rare bright spot in an industry that has been struggling in recent years. According to Pitchbook and the National Venture Capital Association's 2024 Q3 report, emerging solo funds have been the hardest hit, with fewest successfully launched in 2024 in a decade. However, Xs' story shows that with the right strategy and backing, it's still possible to succeed in the venture capital space.

As the venture capital industry continues to evolve, it will be worth watching how Xs' fund performs and whether his boutique strategy can help him achieve his ambitious goals. With his impressive start and notable backers, Xs is certainly one to watch in the venture capital space.

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