Drive Capital’s investors hit a fork in the road • ZebethMedia

Drive Capital was founded by two former Sequoia Capital Partners looking to start anew in the Midwest. But investors in the Columbus, Oh.-based firm have had a bumpy ride of late, and according to our sources, they aren’t enjoying it.
It’s a dramatic turn for Drive, which announced $1 billion in capital commitments back in June, a healthy amount for a 10-year-old firm whose mission it is to invest nearly everywhere in the U.S. outside of Silicon Valley. In fact, in June, the firm — cofounded by veteran VCs Mark Kvamme and Chris Olsen — seemed to be riding high, with a couple of apparent wins and news funds that brought Drive’s assets under management to more than $2 billion.
Yet dating back to September — soon after we talked with Olsen about VC doubling back to California — we heard rumblings about a rift, along with separate plans that Kvamme was making. Then came the announcement last month that the team was splitting up. At first, the story was that Kvamme, who logged more than twice as many years at Sequoia than Olsen, was transitioning to “partner emeritus” because, as he told a Columbus Business First, 10 years and four funding cycles was longer than he originally planned to lead Drive Capital. (This was probably a big surprise to the investors who’d just agreed to let Drive invest their capital.)
This week, the other shoe dropped. Columbus Business First reported that Kvamme, who races cars, is not zipping off to semi-retirement but instead talking with potential backers about a new fund, the Ohio Fund, which will apparently invest in multiple asset classes, including other funds, public stocks, private companies in Ohio, and infrastructure. The idea is to  “focus on the future economic vitality of Ohio,” said an unnamed source to the outlet.
Olsen now says that he’s surprised by this development. We obtained a letter that Drive sent out to its limited partners tonight that reads:
Dear Limited Partner,This week an article was published indicating that our Partner Emeritus Mark Kvamme is launchinga new investment fund. All of us at Drive were surprised by this news, as we are sure you were too.While we will not send you a note each time a new article about Mark is published, we feel that, inthe spirit of being a good partner, it’s appropriate to provide you with a transparent update aboutthis situation and our relationship with Mark.After the article was published we spoke with Mark and learned that the prospect of him raising anew fund was leaked to a journalist from an unknown source. According to Mark, he has not yetdetermined what he is going to do next. Raising a new type of fund is something he is considering,along with other options in public service and personal endeavors.We have a formal separation agreement with Mark that prevents him from starting a competitivefirm or fund to Drive. Please know that this was a heavily negotiated agreement to ensure that itsubstantially protects Drive, our Limited Partners’ interests, and everything we are building towardat Drive.Again, we do not intend to communicate with you each time a new article is written about Mark,but in this instance, we thought it appropriate to provide clarification. Should you have anyquestions, please do not hesitate to reach out [contact information redacted by ZebethMedia].
Sincerely,The Drive Team
Olsen declined to comment for this story; we reached out to Kvamme and did not receive a response. But it’s complicated, to say the least.
According to our sources, part of the split traces to a relationship between Olsen and Yasmine Lacaillade, who was Drive’s COO for nearly seven years before leaving the firm in April to launch her own investment outfit.
Asked about this, a Drive spokesman downplayed any tensions that may have arisen from a romantic relationship between the two, writing: “Yes you heard right in that Chris and Yas are in a relationship. That’s been public knowledge for some time. No comments beyond that.”
Like most venture outfits, Drive also finds its portfolio in rougher shape than a year or two ago. One of Drive’s biggest exits to date has been that of Root Insurance, a now seven-year-old, Columbus, Oh.-based insurance company that specializes in automotive coverage and that staged a traditional IPO in November 2020. Though the shares performed initially, they’ve tanked since, currently priced at roughly $7 each after a reverse stock split, down from $486 per share the day the company went public. Olsen stepped off the board in November of last year.
The other big star of Drive’s portfolio currently — Olive AI — is trying to overcome its own challenges. The Columbus-based healthcare automation startup, founded in 2012, has long framed its extensive history of pivots (more than 30 to date) as an inspirational story of trying, then trying again. Olive was rewarded by investors for its willingness to shift gears, too. It has raised a staggering $902 million over the years and said last year that it was valued at $4 billion.
But the outfit, a robotic process automation company that aimed to take on hospital workers’ most tedious tasks, was never all that it appeared, according to a series of damning Axios pieces; and by September, the wheels began to come off. Most notably, the company’s chief financial officer and chief product officer were abruptly fired, following out the door numerous C-level executives who also left this fall, including its president, a senior director of operations, its EVP of operations and its SVP of payer product strategy. Olive AI has since said it will sell a portion of its products and services to Rotera, a company built out of Olive’s own venture studio.
Limited partners aren’t happy about these developments, but as far as we’re aware, they have not talked in earnest about taking action and it seems unlikely that they will. At least, it’s exceedingly rare for limited partners to cancel their capital commitments and only slightly more common for VCs to extend them the courtesy of scaling back those commitments.
They might think Olsen will land on his feet. Further, there isn’t much interest in creating headaches for Kvamme, who borders on VC royalty. (His father was a partner at Kleiner Perkins; his first wife is the daughter of another famed VC, former Sequoia Capital partner Pierre Lamond.)
Kvamme is very connected in Ohio — he was lured there originally by his longtime friend John Kasich to take an economic development job. He may have political aspirations of his own, too. Indeed, one regional investor recently told Business Insider that Kvamme may be launching a fund meant to bolster Ohio’s economy as groundwork for a future campaign.
There is a playbook if so. Investor JD Vance set up a venture firm in Cincinnati called Narya in late 2019 before announcing his bid for Senate roughly 1.5 years later. In late September, according to Cleveland.com, Kvamme co-hosted one of the fundraisers that helped Vance win that race earlier this month.

             Disclaimer: Any Product You Buy Here, Amazon Pays me A Commission With No Additional Fee.

 

This is a must Have Software For Your Home & Business. This software will help your business and make your job Stress Free.

Business and Office Management  Category.

(Old Version) H&R Block Tax Software Deluxe + State 2023 with Refund Bonus Offer (Amazon Exclusive) (PC/MAC Download)

(4264)

20% Off $49.99 $39.97 (as of November 21, 2024 06:11 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Choose to put your refund on an Amazon gift card and you can get a 2% bonus. One state program download included. State e-file sold separately. Reporting assistance on income from investments, stock options, home sales, and retirement Guidance on max... read more

Acrobat Pro | 1-Month Subscription | PDF Software |Convert, Edit, E-Sign, Protect |Activation Required [PC/Mac Online Code]

(1444)

$29.99 (as of November 21, 2024 06:33 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Create and edit PDFs. Collaborate with ease. E-sign documents and collect signatures. Get everything done in one app, wherever you go. Edit text and images without jumping to another app. E-sign documents or request e-signatures on any device. Recipi... read more

Adobe Photoshop Elements 2025 & Premiere Elements 2025 Student & Teacher Edition | PC/Mac Code | Box with Download Code | Photo & Video Editing | 3-year term license | Activation Required

(17)

$79.99 (as of November 21, 2024 05:39 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Remove photo objects with AI power. Create and control photo depth with AI. Change the color of any object in your photo. Seamlessly combine multiple pics. Create dynamic video titles with text styling controls. Access free Adobe Stock video title te... read more

Adobe Photoshop Elements 2025 | Photo Editing | 3-Year Term License | PC/MAC | Box with Download Code | Activation Required

(17)

$99.99 (as of November 21, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Remove objects with AI power. Create and control depth with AI. Change the color of any object. Seamlessly combine multiple pictures. Create with modern textures and graphics. Be creative with the web and mobile beta apps. Get a 3-year term license f... read more

AVG Ultimate 2024 | Antivirus+Cleaner+VPN | 5 Devices, 2 Years [PC/Mac/Mobile Download]

(1124)

14% Off $34.99 $29.99 (as of November 21, 2024 06:11 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

AVG ULTIMATE: Your all-in-one antivirus, VPN, and tuneup combo. OUR BEST SECURITY: Enjoy our advanced, real-time security for your computers, tablets, and phones. OUR BEST PRIVACY: Secure your privacy with powerful encryption so no one can see what y... read more

Bitdefender Total Security - 5 Devices | 1 year Subscription | PC/Mac | Activation Code by email

(2361)

50% Off $89.99 $44.99 (as of November 21, 2024 06:43 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

SPEED-OPTIMIZED, CROSS-PLATFORM PROTECTION: World-class antivirus security and cyber protection for Windows, Mac OS, iOS, and Android. Organize and keep your digital life safe from hackers. ADVANCED THREAT DEFENSE: Your software is always up-to-date ... read more

Bitdefender Total Security 2024 – Complete Antivirus and Internet Security Suite – 5 Devices | 2 year Subscription | PC/Mac | Activation Code by Mail

(3511)

$74.99 (as of November 21, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

SPEED-OPTIMIZED, CROSS-PLATFORM PROTECTION: World-class antivirus security and cyber protection for Windows (Windows 8, Windows 8.1, Windows 10, and Windows 11), Mac OS (macOS X Yosemite 10.10 or later), iOS (11.2 or later), and Android (5.0 or later... read more

Clifford The Big Red Dog Thinking Adventures CD-ROM Parent's Guide Ages 4-6

(9)

-85% Off $2.43 $4.50 (as of November 21, 2024 05:37 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

CLIP STUDIO PAINT PRO - Version 1 - Perpetual License - for Microsoft Windows and MacOS

(3061)

$23.99 (as of November 21, 2024 06:18 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

Create original sketches using your mouse or draw naturally with a pen tablet. Powerful coloring tools make CLIP STUDIO PAINT your all-in-one illustration, painting, manga and comic creation solution. Use an assortment of powerful art tools for illus... read more

CodaKid Roblox Coding, Award-Winning, Coding for Kids, Ages 9+ with Online Mentoring Assistance, Learn Computer Programming and Code Fun Games with Lua and Video Game Programming Software (PC & Mac)

(332)

$59.00 (as of November 21, 2024 05:32 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)

CodaKid’s Roblox Lua coding educational software provides 100+ hours of interactive student projects designed to engage and educate kids, teaching them to become creators in their own right. Students learn real Lua coding and video game design using ... read more