Two Former Twitter Executives Raise $325 Million for Two VC Funds

By Adriaan Brits Tuesday, February 16, 2021

01 Advisors, a venture capital (VC) business company founded by early Twitter executives Dick Costolo and Adam Bain, has secured $325 million for two VC funds. Costolo was the CEO of Twitter from 2010 to 2015.

Magnifying glass enhancing 'VC.'

Concentrated Bets in Consumer and Business Areas

According to Techcrunch, as many as 81 investors have backed 01 Advisors in two funding rounds. The company’s size remained relatively the same since its public debut in August 2019, several years after its founders started backing startup companies both together and individually.

Apart from former Twitter executives Costolo, Bain, and Dave Rivinus, Kelly Kovacs is also a partner at 01 Advisors. She served as chief of staff at Twitter under Costolo before joining Color Genomics. Kovacs was hired by 01 Advisors in 2018.

According to Crunchbase, the VC fund has so far invested in 14 startups, with their business moves mostly concentrated on both consumer and business areas. The company has backed some startup businesses from early on, while sometimes it supported firms at a later stage.

Some of the startup companies backed by 01 Advisors include Literati, an Austin, Texas-based book club subscription service that secured $40 million in Series B funding last month led by Felicis Ventures, and Tipalti, a startup that produces automation software for global payments, which has raised $150 million in Series E funding at a $2 billion valuation in October 2020.

Other recipients include payments provider SpotOn Transact, which secured $50 million in Series B in 2020, and mental health benefits solution platform Modern Health, which secured $74 million in new funding a few days ago.

Furthermore, the VC also co-sponsored the special purpose acquisition company (SPAC) that took Opendoor public, together with investor Chamath Palihapitiya. Palihapitiya also launched the SPAC that took public Virgin Galactic, which then invited Bain to serve as a director.

In October, Costolo made the news when he posted a tweet against Coinbase founder and chief executive Brian Armstrong, who publicly discouraged political discussions and activism among his employees at work. Some business leaders have supported Armstrong’s stance, but not Costolo.

“Me-first capitalists who think you can separate society from business are going to be the first people lined up against the wall and shot in the revolution. I’ll happily provide video commentary,” he said.


01 Advisors, a private equity company and VC founded by former Twitter executives, has raised $325 million for two VC funds to back startup companies.

About the Author

Headshot of Adriaan Brits

An analyst of global affairs, Adriaan has an MSC from Oxford, with diverse interests in the digital economy, entertainment, and business. He is a specialist trainer in advanced analytics and media.

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