"If Alphabet was the sole LP, the fund would be inside of Alphabet, and then when they invested in something from X, it would still be inside Alphabet,"
"So Alphabet can be a small LP, but if it's more than a small LP, we undo the thing that we're trying to accomplish."
"Landing it just outside the Alphabet membrane, where we can be very tight with them, get a lot of strategic co-benefit with them, but not necessarily control them, makes sense,"
X is shifting to spinning ambitious technology projects into independent companies rather than keeping them inside Alphabet. Series X Capital is a dedicated venture fund raised to invest exclusively in X spinouts, with Alphabet deliberately remaining a minority limited partner. Series X Capital has raised over $500 million and is run by Gideon Yu. The fund structure preserves strategic benefits with Alphabet while allowing spinouts operational independence and faster execution when projects differ significantly from Alphabet’s core. X has previously graduated projects like Waymo and Wing and emphasizes intellectual honesty and a culture that supports the spinout approach.
Read at TechCrunch
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