NFDG is a venture capital firm focused exclusively on artificial intelligence, founded by Nat Friedman and Daniel Gross. The fund provides early-stage investments and operational support to startups building AI infrastructure, applications, and research. NFDG has become known for its hands-on approach, often helping portfolio companies with technical and go-to-market strategy.
Founded in 2022, NFDG emerged from the partnership of Friedman, former CEO of GitHub, and Gross, who previously led Y Combinator's AI investments. The firm is headquartered in San Francisco, California, and has raised multiple funds, including a $250 million fund announced in 2023. NFDG typically invests at the seed and Series A stages, with check sizes ranging from $1 million to $10 million.
Investment Thesis
NFDG targets companies that push the boundaries of Artificial intelligence and Machine learning, with a particular interest in Deep learning and Neural network architectures. The fund prioritizes founders with deep technical expertise, often backing researchers and engineers from leading labs like OpenAI, Anthropic, and Google DeepMind. NFDG also invests in AI infrastructure, including Large language model training and inference, as well as applications in healthcare, robotics, and autonomous vehicles.
Notable Portfolio Companies
NFDG has invested in several high-profile AI startups. These include Figure AI, a humanoid robotics company, and Sanctuary AI, which develops general-purpose robots. The fund also backed Inflection AI, a conversational AI startup, and AI21 Labs, known for its Jurassic language models. In the autonomous vehicle space, NFDG has stakes in Cruise and Waymo. Additionally, the fund invested in Neuralink, the brain-computer interface company, and Fermata, which applies AI to agriculture.
Founding Partners
Nat Friedman co-founded NFDG after serving as CEO of GitHub from 2018 to 2021. He is also known for his work on the GNOME desktop environment and as a partner at Y Combinator. Daniel Gross previously led Y Combinator's AI investments and founded Cue, a personal assistant startup acquired by Apple in 2013. Both partners bring extensive networks in Silicon Valley and deep technical backgrounds.
Fundraising and Growth
NFDG raised its first fund of $100 million in 2022, followed by a $250 million fund in 2023. The firm has also made direct investments from its partners' personal capital. As of 2024, NFDG has backed over 50 startups, with a focus on early-stage rounds. The fund has attracted limited partners including institutional investors and prominent tech executives.
Impact and Recognition
NFDG has become a prominent player in AI venture capital, often participating in oversubscribed rounds. The fund's portfolio companies have achieved significant milestones, such as Figure AI raising $675 million in 2024 at a $2.6 billion valuation. NFDG's investments have contributed to the growth of the Generative AI ecosystem, supporting innovations in Transformer (architecture) models and Deep learning frameworks. The firm is frequently cited in industry reports as a top AI-focused fund.
References
NFDG's activities have been covered by major technology publications, including TechCrunch, The Information, and Bloomberg. The firm's website and public filings provide additional details on its investments and team.