Immad Akhund Launches $26M Fund: Venture Insights and Lessons
Mercury co-founder and CEO Immad Akhund recently announced the launch of a $26 million fund dedicated to early-stage startups, marking a new chapter for one of Silicon Valley’s most prolific angel investors. The move formalizes Akhund’s years of hands-on experience, with a portfolio that now boasts over 350 investments in notable companies like Rippling, Airtable, Rappi, Applied Intuition, and Substack[8].
Akhund, who also served as a part-time partner at Y Combinator, discussed his motivations for transitioning from individual angel investing to a more structured fund model. Key drivers included increased investor interest from Limited Partners (LPs) who preferred backing a fund rather than individual syndicates, and a surge in deal flow as Mercury’s prominence in the startup ecosystem grew. With Mercury now used by 30–40% of all startups, Akhund found himself in a unique position to access top-tier founders and opportunities, necessitating a team-based, scalable approach[3][8].
Why Founders Should Take the Highest Price
Akhund shared hard-won insights for founders seeking funding. One of his most emphatic recommendations: “Founders should always push for the highest price.” He explained that maximizing valuation early on provides critical leverage for future rounds, especially in turbulent markets. While some fear “overpricing” or alienating investors, Akhund stresses that a higher initial price protects the company and its stakeholders during inevitable downturns or fundraising challenges[8].
Serial Entrepreneurs: The Edge of Experience
Akhund also weighed in on the debate over first-time versus serial entrepreneurs. His experience has shown that serial entrepreneurs generally outperform their first-time counterparts. They bring a tested playbook, resilience, and a clearer understanding of the fundraising landscape, leading to better outcomes for investors and teams alike[8].
AI: Overhyped, or Worth the Hype?
In a candid assessment of current trends, Akhund described AI investments as “overhyped” but still worthy of attention. While acknowledging the transformative potential of AI, he cautioned that much of the current market activity is driven by hype cycles rather than sustainable value creation. His approach: focus on founders with proven track records and clear visions for how their products solve real problems in large markets[8].
The Future of Venture Capital
Looking ahead, Akhund forecasted a venture capital landscape that rewards founders with strong execution skills and the ability to navigate both boom and bust cycles. He emphasized the importance of operational rigor, team building, and long-term thinking–qualities he seeks in both his investments and at Mercury[8].
Key Takeaways from Raising a First-Time Fund
Akhund reflected on the challenges and surprises of launching his own fund. Among the most significant was the complexity of managing LPs and governance structures compared to angel investing. However, he found that the ability to back founders more meaningfully and leverage a broader network of expertise made the transition worthwhile[1][8].
Quickfire Advice for Founders
- Push for the highest price in early rounds.
- Choose the right investors—not just the highest bidder.
- Leverage experience: serial entrepreneurs have a real edge.
- AI is exciting but requires a critical eye.
- Focus on building for impact, not just for hype.
Team V.3-UAE
