TaskRabbit Founder Raises Fund to Back Startup Investors From Underrepresented Groups

Leah Solivan, founder of TaskRabbit and general partner at early-stage venture fund Fuel Capital, is launching her own fund called Precedent Collective, according to a person familiar with her plans. Rather than function as a traditional fund, Precedent will write checks to early-stage startup investors so they can put more money into startups they’ve backed. Early investors in startups often have what are called pro rata rights that allow them to invest more money in later rounds in order to maintain the same percentage of shares.

Precedent plans to work primarily with early-stage investors from underrepresented minority groups, said the person with knowledge of its plans. The size of the new fund couldn’t be learned but Solivan aims to finish fundraising next year. Female-led venture funds have raised far more capital this year than last year, The Information has reported.

Demand for Precedent’s capital may vary. Many early-stage startup investors such as Bling Capital and Fika Ventures have already raised separate so-called opportunity funds to participate in later funding rounds. And investors that take money from Precedent may need to seek approval from founders before they can invest it.

Solivan and Fuel Capital founding partner Chris Howard will eventually stop investing through Fuel, which invested in Figma’s Series B round in 2018 and whose other notable investments include Flexport and Lattice. Solivan will be managing director of Precedent and Jamie Viggiano, chief marketing officer of Fuel, will join Precedent as a non-investment partner, said the person with knowledge of the changes. A spokesperson for Fuel Capital declined to comment.

Solivan founded TaskRabbit in 2008 and was CEO for nearly eight years. Furniture-maker Ikea in 2017 acquired the startup for undisclosed sum.