Jan Koum and Abramson’s Strategic Startup Move
Jan Koum and Michael Abramson, during the initial months of the pandemic, returned to Texas to plan Abramson’s next career move. A former partner at venture capital firm Sequoia Capital, known for investing in successful startups like beauty retailer Glossier and delivery app Rappi, Abramson maintained a low public profile despite significant capital investments. In his next endeavor, aiming to sustain a calm approach, he reached out to a friend who shared a similar mindset about privacy and secured billions in funding: WhatsApp billionaire Jan Koum.
Jan Koum’s Stealthy Support: Decoding Newlands’ $10B Rise
Today, with Jan Koum’s support, Abramson quietly leads Newlands, a firm that has quickly become a major player in the world of new funds. While Abramson and Jan Koum haven’t publicly discussed Newlands, and the firm’s recent funding announcements are not evident on its corporate website, regulatory filings reveal a company with nearly $10 billion in public equity, primarily in tech stocks, venturing into early-stage startup investments in the environmental sector.
Some associates in Dallas view Newlands as Koum’s family office, estimating its value at around $15 billion, tying it to the filing connecting Jan Koum to Newlands. However, Newlands doesn’t seem to operate like a typical family office, as experts have scrutinized its public filings.
Newlands: A Stealthy Investment Powerhouse
Estimating the size of Newlands’ public ownership is not straightforward. Abramson and Jan Koum have not responded to comment requests, and three other investors known to work with the firm have also not been disclosed. However, conversations with a dozen partners and former or current associate’s – many of whom prefer to remain anonymous due to either not being authorized to speak or fearing retaliation – paint a picture of a fund that has crafted a diverse portfolio, including some eye-catching positions in the largest public tech companies, and is actively seeking meetings and support from several other startups to further expand.
Newlands: Eco-Investing with Purpose
One knowledgeable investor about the firm said, “They have a very good network, and they’ve made purchases in many things. They want to help people in the broader environmental system – and they also want to secure and grow their wealth.”
When Sequoia doubled its initial investment in WhatsApp in 2013, Abramson was a key member of the team working alongside Jan Koum, a Ukrainian-born co-founder whose messaging app had reached 200 million users. Together, they shared a partial aversion to LimeLight. In a rare interview for a 2014 cover story, Jan Koum mentioned not sharing his employees’ enthusiasm when WhatsApp rose to the top 20 apps on Apple’s App Store. “Marketing and press go to your head,” he explained. “It gets in your eyes, and then you’re not paying attention to the product.”
New Lands is all about capital and its partners – and their capital is making waves
Abramsen: The Quiet Power of a Well-Connected Investor
From his early days in Texas, Abramsen, a graduate of Harvard and Stanford Business School, was known for attracting attention, albeit not always positive. After completing his education, he joined a public/private crossover fund associated with Sequoia and Sequoia Capital Global Equities. Later, he concluded his venture journey as part of the growth team at Sequoia Capital. Colleagues knew him as a ‘good guy,’ someone with connections to Michael Moritz, the legendary figure behind early global operations at Google and a prominent venture capitalist.
In 2017, Abramsen was nominated as co-head of the team alongside Partner Pete Grady. Yet, Abramsen operated under an ‘extreme introvert’ persona, as some sources revealed. ‘He’s an investor, not a hunter who will come out in the open,’ said one source. ‘His network is tight enough.’
Abramsen’s Low-Profile Impact
Working with Rappi, a Latin American on-demand delivery app that Abramsen supported in a 2016 Series B funding round, revealed his knack for understanding ‘cold numbers.’ According to a fellow Rappi investor, Abramsen, though low-profile, was remarkably responsive via email. However, his association with the company seemed to clash with its apparent preference for a more ostentatious approach. Another Rappi investor noted the advantage of having an investor from a large, challenging-to-crack VC firm.
While Abramsen publicly backed beauty retailer Glossier in 2019, the deal didn’t gain as much attention as other investments. A fellow Glossier investor highlighted his intense and diligent involvement behind the scenes. Both founders of Rappi and Glossier declined to comment on requests for remarks.
Abramsen’s Silent Venture: From Sequoia to New Lands
Abramsen, despite having only one seat on Sequoia’s board until 2020, made a splash with significant investments in companies like Noom, a weight loss app. He remained silent during the COVID-19 pandemic, navigating the challenges without much fanfare. However, in 2020, Abramsen left Sequoia, citing proximity to his family during the pandemic.
His departure from Sequoia didn’t mark the end of his venture; Abramsen resurfaced in 2021, teaming up with two other SCGE alumni, Andi Shah and Dominik Pausch. Together, they launched New Lands with a commitment to run a $1 billion fund. However, Abramsen remained mum about his new endeavor.
New Lands’ $9.4B Vision for Growth
Abramsen’s reconnection with Jan Koum, reportedly initiated in 2014 after the $22 billion sale of WhatsApp to Facebook, led to a close friendship. They even spent holidays together. The two former SCGE colleagues, alongside Shah and Pausch, formalized their partnership in 2021, intending to manage a $1 billion fund. While not much information is available, it’s evident that New Lands aims to strengthen its portfolio before scaling up.
New Lands’ filings in November revealed that they intend to hold assets worth $9.4 billion to close Q1 2023, a significant increase from the previous $3.8 billion disclosed for the preceding quarter. Notably, New Lands has diversified its holdings, with substantial positions in Meta, Tesla, Alphabet, Amazon, DoorDash, JD.com, and Robinhood, among others. It’s evident that the company is making strategic moves in public tech stocks, startups, and cryptocurrencies.
New Lands: Redefining Investment Silently
While the majority of New Lands’ investments seem to be in public tech stocks, insiders suggest that nearly half of the capital is earmarked for such equities, with an additional 30% for startups and 20% for cryptocurrency and other funds. However, public filings indicate that public equity constitutes over 80% of the portfolio, suggesting that the public has been a significant participant in their endeavors.
Abramsen’s risk-reward focus and his preference for public assets make New Lands an intriguing player in the financial landscape. Despite venturing into startups, the firm maintains a low profile, continuing to work quietly. PitchBook’s startup funding tracker currently has no records for Abramsen, Jan Koum, or their firm in recent pseudonymous deals. Whether this silence is intentional or not, New Lands’ approach seems to be creating ripples in the investment world.
Newlands Joins FTX for Crypto Venture
The Newlands couldn’t keep their investment endeavors in New Zealand silent! In an official announcement, they revealed their involvement in FTX, a cryptocurrency exchange led by the former billionaire and convicted criminal Sam Bankman-Fried.
According to reports, Newlands partnered with Abramson’s previous firms, Sequoia Capital, and SCGE for this venture. The names of Abramson and Jan Koum were included in the list of upcoming advisors for FTX’s final fundraising push at the end of 2022, alongside Alfred Lin from Sequoia and Paradigm’s former partner, Matt Huang.
Newlands: Decoding Billion-Dollar Investments
While the firm has set conditions for a relatively small number of $1 million initial stage investments, sources suggest that Newlands hasn’t formalized or obtained full-time investment services from any capital provider. However, another source mentioned that the firm has explored partnerships with other funds for co-investing opportunities.
The overall size and scale of Newlands’ operations remain a mystery, as the firm, under Koum’s oversight, manages a percentage of Jan Koum’s $15 billion fortune. The multi-billion-dollar portfolio of the firm may include shares controlled by billionaires or family trusts, with some having received shares from Jan Koum in the past.
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Newlands: Redefining Wealth Management
Although, experts speculate that it typically involves managing expenses efficiently, preparing financial statements, filing taxes, and acquiring new assets tailored to clients’ preferences. Newlands positions itself as a global participant in investment partnerships, boasting a team of 11 employees with expertise in finance, tax, and accounting, many of whom have previously worked with EY and Maverick Capital.
Family offices like Newlands are often perceived as hedge fund managers, but they differentiate themselves by providing services tailored to ultra-high-net-worth individuals. Individuals with substantial wealth sometimes seek the services of venture capital or hedge fund-backed investors to organize their portfolios. Occasionally, funds like Newlands, which represent an individual or family, can withdraw their capital from separate legal entities.
More than a decade ago, WhatsApp’s former co-founder, Mark Zuckerberg, invested part of his wealth in Iconiq Capital, an investment advisory firm. Abramson and Jan Koum might be eyeing similar advancements for Newlands, perhaps aiming to play a role in supporting the next generation of startups.
Newlands: Shaping Tech Entrepreneurship
As for Newlands’ presence in the market, it seems to align with the current wave of support for tech entrepreneurs, leaving observers curious about their strategies. Only time will tell if Newlands follows the path of Maverick, which started over 30 years ago with the support of another billionaire, Sam Wyly, and eventually became a significant player in the industry. For now, these speculations remain just that—speculations. One thing is certain: Newlands is making its mark in the market, endorsing a new wave of tech entrepreneurs, with Jan Koum riding the unicorn wave.
One source familiar with Newlands’ mindset humorously commented, “In my opinion, they’re clarifying what it means to have a family office, putting a slight distance from it in a tongue-in-cheek manner. They are happy with the freedom to invest according to their own preferences.
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