Why Ex-Meta CTO Mike Schroepfer Says It's A Great Time To Build A Hard Tech Company: 'Infrastructure Is The Moat'
In this Crunchbase News Q&A, Gigascale Capital founder Mike Schroepfer discusses the coming power crunch, why infrastructure has become a strategic moat, and how breakthroughs in everything from batteries to robotics could reshape the economy over the next decade. Gené Teare This is an ongoing series on investors focused on rebuilding the physical layer. The first interview in the series was with Peter Barrett, a decade-long investor at Playground Global .
Key Takeaways
- Mike Schroepfer founded Gigascale Capital after departing Meta as CTO in 2022.
The firm invests in companies rebuilding the physical economy.
- " Gigascale raised its first institutional fund this month, a $250 million investment vehicle.
The firm has already made more than 25 portfolio investments to date.
- "It's not a software business with higher capex," said Schroepfer.
- The belief is there is a confluence of technological changes that are bringing new products and new companies to market that are better, faster, cheaper than what's out there.
- We had electric vehicles showing up, onshoring and manufacturing, and this was pre-data centers.
Stats & Key Facts
- #" Gigascale raised its first institutional fund this month, a $250 million investment vehicle.
- #Before raising the fund, the firm made 22 investments funded by Schroepfer's family office in order to prove the model.
- #Its check size is anywhere from $1 million to $10 million.
Mike Schroepfer founded Gigascale Capital after departing Meta as CTO in 2022. The firm invests in companies rebuilding the physical economy. As Schroepfer and his partners at the firm see it, surging demand for AI, power and industrial capacity is creating a once-in-a-generation opportunity to rebuild the physical economy - from energy infrastructure and advanced manufacturing to materials and robotics.
And as AI makes software cheaper and easier to create, the competitive advantage increasingly shifts to the hardware, energy systems and supply chains that underpin it all. Key to starting the fund was Schroepfer's experience building out the infrastructure to support Meta's business. "I could see the trends coming.
We're going to need all the compute," he said. "I don't know where we're going to get the power, so it's going to create this massive supply-demand crunch. " Gigascale raised its first institutional fund this month, a $250 million investment vehicle.
For more details please read the original article at Crunchbase News.
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