FORMATION 8

Overview

Formation 8 was a venture capital firm founded in 2011, focused on investing in smart enterprise and energy technology companies with an emphasis on connecting U.S. startups to Asian markets.¹²⁵ It raised over $900 million across funds, achieving high returns from investments like Oculus VR and RelateIQ, and was noted for rapid success before disbanding in 2015.¹⁴ The firm provided operational expertise to portfolio companies aiming for global scale, particularly in California-based enterprises.²³⁴

History

Formation 8 was founded in 2011 by Joe Lonsdale, Jim Kim, and Brian Koo, with headquarters in San Francisco.¹² It closed its first fund of $448 million in April 2013 after targeting $200 million, recording a 95% net IRR, and a second $500 million fund in December 2014.¹⁴ Notable investments included Oculus (acquired by Facebook for $2 billion) and RelateIQ (acquired by Salesforce for $390 million).¹⁴ The firm disbanded in November 2015 due to differing partner strategies and reported issues with investments and fund management.¹

Notable Products

• Fund I ($448M) - First fund closed in 2013, focused on enterprise and energy tech with high IRR of 95%.
• Fund II ($500M) - Second fund closed in 2014, including investments in unicorns like Illumio.
• F8 Asia Growth Partners - Fund closed in April 2016 targeting Asian growth opportunities.

Reputation

Formation 8 was praised as one of the top-performing VC firms early on, with Fortune calling it 'the hottest venture capital since Andreessen' due to strong exits like Oculus and RelateIQ.¹⁴ Professionals noted its success in linking U.S. startups with Asian networks and high returns.¹⁴ It faced criticism for abrupt disbanding in 2015 amid partner disagreements, bad investments, and unauthorized fund leveraging.¹