Cove Fund

We are incredibly proud to celebrate our portfolio company, FreightPOP, for being named to the prestigious 2025 Inc. 5000 list of America's fastest-growing private companies! Achieving this honor for the third time underscores FreightPOP's sustained rapid growth and its position as a market leader in logistics technology. Their success is a clear validation of their innovative, AI-first Enterprise Transportation Management System (TMS). FreightPOP is transforming the supply chain by: - Offering an AI-powered, multimode TMS that simplifies operations. - Enabling enterprise shippers to manage all shipping modes and over 1,500 carriers from a single platform. - Helping businesses cut shipping costs by up to 20% and gain real-time control over their logistics. Congratulations to the entire FreightPOP team on this phenomenal achievement! We are thrilled to continue supporting their mission to optimize global shipping and logistics. #Inc5000 #FreightPOP #VentureCapital #LogisticsTech #SupplyChain #TransportationManagement #StartupSuccess #PortfolioNews Read more here - https://lnkd.in/gu4JV-iF

Visaic, Inc., one of our portfolio companies recently announced its partnership with Ontario University Athletics (OUA) to power the next evolution of OUA.tv, the official streaming platform for university sports in Ontario, Canada. This collaboration will introduce a new subscription-based service and a dedicated mobile app (iOS and Android) for the 2025-26 season, providing fans with unparalleled access to their favorite university sports. Congrats to Kanaan Jemili, Ph.D. and his team! You can read more here - https://lnkd.in/gy4BFtiE

Cove Fund is excited to be part of SigmaSight's journey and excited about the official launch of their cornerstone product! SigmaSight, a California-based technology startup, has officially launched Analyzer, a software solution tailored for the property & casualty (P&C) insurance carrier market. Released on September 1, 2024, Analyzer is designed to give insurers deeper, data-driven insights into plaintiff attorneys, judicial venues, and litigious behavior when handling litigated insurance claims. Key Features & Capabilities Attorney & Venue Analysis: Analyzer aggregates historical performance data of plaintiff attorneys and venues. It analyzes their past track records, behaviors, tendencies, and outcomes in litigated files. This allows insurance carriers to evaluate how an attorney or venue might influence the outcome, duration, or cost of litigation. Real-Time Analytics + AI: The tool includes real-time analytics, underpinned by machine learning. This helps insurers to stay current with evolving litigation patterns, making decisions based on up-to-date and predictive insights rather than static or outdated data. Negotiation & Strategic Decision Support: With these insights, carriers can negotiate settlements more intelligently, optimize their litigation strategies, and better manage exposure. Insight into attorney/venue history provides leverage in settlement negotiations. Read more here, https://lnkd.in/gyXaYJAW

WethosAI Unveils Groundbreaking Aii™: Artificial Individual Intelligence for Predictable Organizational Performance in the AI Era Unlike static personality tests like MBTI® or DiSC®, Aii™ delivers real-time insights into communication styles, decision-making habits, and biases—helping leaders anticipate friction, align teams, and coach more effectively. Acting as both a mirror and a lens, Aii™ reflects individual tendencies while tailoring context-aware recommendations that turn insight into action. CEO Stuart McClure calls it a leap beyond conventional assessments, while board member CeCe Morken highlights its value in hybrid environments where trust and cohesion drive performance. With Aii™, WethosAI is reframing organizational intelligence—making people, technology, and strategy work together for more predictable outcomes. Read More: https://lnkd.in/gQk7fQgM

From Operating Room to Investor’s Chair: Joe Rinehart’s MedTech Journey with Cove Fund Joe Rinehart, founder and CEO of Perceptive Medical, exemplifies the kind of founder who bridges deep domain expertise with the entrepreneurial grit needed to navigate the realities of building in healthcare. A practicing anesthesiologist turned serial medtech entrepreneur, Rinehart is also a Limited Partner (LP) in Cove Fund — giving him the rare vantage point of both pitching and evaluating startups. In a recent conversation with fellow Cove Fund LP Roger Van Duinen, Rinehart reflected on the duality of his role and how Cove’s engaged, operator-driven model has shaped his journey. Rinehart’s first startup, launched in 2010, developed an automated IV fluid management system that was acquired and commercialized by Edwards Lifesciences. That experience seeded both confidence and hard-earned lessons — informing how he approached Perceptive Medical, which aims to simplify OR workflows through intelligent automation. “Everything in medtech takes longer and costs more than expected,” he said. “So getting things right upfront, especially in compliance and quality systems, is critical.” Cove Fund entered the picture early. Initially invited to join Fund I as a physician LP, Rinehart found value not just in the investment returns, but in the access to seasoned operators across disciplines. “Whether it was financial modeling help from Mike Benvenuti or advice on FDA strategy, the LP network was huge,” he shared. That community — made up of nearly 100 experienced professionals across Southern California — offered more than capital. It provided insight. “Being an LP gave me the cheat codes. You start to see how investors think, where they focus, and how to prepare for the risks they care about.” He credits much of his company’s strategic planning — and even service provider choices — to relationships formed through Cove’s diligence process and collaborative model. “Even when doing diligence on another startup, you find partners, advisors, future hires. It’s all connected.” Rinehart is bullish on Southern California’s medtech future. “Irvine is one of the three big U.S. hubs. We’ve got the companies, the universities, the capital — and most importantly, the talent.” With Cove Fund focused exclusively on SoCal startups, that regional concentration becomes a competitive advantage. His advice to prospective LPs and founders alike? Get involved. “This isn’t a check-it-and-forget-it fund. The more active you are, the more value you create — for others and yourself.” From the OR to the boardroom, Joe Rinehart’s story reflects Cove Fund’s core belief: the best startups aren’t built alone. They’re built in community.

AI: A Tool, Not the End Goal Artificial Intelligence (AI) is revolutionizing the startup ecosystem, offering tools that can enhance efficiency, reduce costs, and drive innovation. However, the key to leveraging AI lies in its thoughtful and strategic integration into your business model. Rather than viewing AI as an end goal, startups should consider it a tool to solve specific business problems. Unless you’re a tech giant developing large-scale AI models, focus on how AI can enhance your existing products or services. Identify niches where AI can have the most disruptive impact, understanding that it’s the application that differentiates, not the AI itself. AI can significantly streamline operations, leading to substantial cost savings. Integrating AI into product development can automate tasks like code generation and testing, reducing time-to-market and operational expenses. Additionally, AI can enhance customer interactions through chatbots and personalized recommendations, improving customer satisfaction while reducing support costs. It’s crucial to avoid incorporating AI into your business model merely because it’s trendy. Start with the fundamental question: does AI make your product better, faster, or more valuable for the customer? If it does, lean into it and be clear about where it gives you an edge. If it doesn’t, it’s better to stay focused on what you’re great at. Investors can discern when AI is being forced into a narrative. Authentic use of AI, especially when tied to proprietary data, unique workflows, or real efficiency gains, is what truly moves the needle. Leveraging proprietary data can provide a significant competitive advantage. This data can be used to train AI models, creating a unique value proposition that’s hard to replicate. In conclusion, AI offers transformative potential for startups, but its integration should be strategic and value-driven. By focusing on areas where AI can genuinely enhance your product or service, leveraging proprietary data, and avoiding the temptation to adopt AI for its own sake, startups can harness AI’s power to drive growth and innovation. You can read the full article here - https://lnkd.in/gGyWpDa3 About Us The Cove Fund is a seed-stage venture capital fund based at UC Irvine’s Beall Applied Innovation, a hub for Southern California entrepreneurs and investors. We invest in early-stage technology and life science companies with differentiated products that address large markets and can achieve major milestones with seed funding. Since our inception, we have invested over $20 million and are actively deploying capital from our $24 million third fund. If you are a Southern California startup seeking funding — or an investor interested in becoming a limited partner — visit us at www.covefund.com.

Cove Fund Proud to Back Carlsmed from Seed to Nasdaq We at Cove Fund are extraordinarily proud to have backed Carlsmed from its earliest days—and even more excited to celebrate the company ringing the Nasdaq opening bell as a newly listed public company. Early Partnership and Vision Cove Fund led Carlsmed’s seed financing in 2019, when the company was still pre‑revenue and its AI‑enabled personalized spine surgery platform was just an emerging vision. From the start, Carlsmed impressed with a founding team led by serial entrepreneur Mike Cordonnier, proprietary imaging‑based implant design, and a market opportunity in spinal fusion surgery ripe for disruption. That early confidence has been fully confirmed by what the team has achieved since. IPO and Market Debut On July 15, 2025, Carlsmed announced the launch of its initial public offering, offering 6.7 million shares at a range of $14.00 to $16.00 per share with a 30‑day option for over one million additional shares. The shares began trading on the Nasdaq Global Select Market under ticker CARL in the week of July21, 2025. The IPO was priced at $15.00 per share and raised approximately $100.5 million in gross proceeds, with trading officially beginning on July 23, 2025 and the offering closing on July 24, subject to customary conditions. To mark this milestone, CEO Mike Cordonnier and his team rang the Nasdaq opening bell at MarketSite in Times Square (watch here - https://lnkd.in/gVmwZf9s), symbolizing not just a successful listing but the beginning of a new chapter in Carlsmed’s journey. Momentum and Clinical Impact This public debut comes on the back of rapid growth: Carlsmed nearly doubled revenue in 2024, delivering around $27.2 million, and has continued to ramp in 2025 with $22.2 million in sales through mid‑year. Meanwhile, the number of surgeons using the platform rose from 103 in early 2024 to nearly 200 by June 2025. Built around Carlsmed’s aprevo® platform—a combination of AI planning, custom implants, and single‑use instrumentation—the company is expanding into cervical surgical applications, with U.S. commercial launch expected in 2026 following Breakthrough Device designation from the FDA. What This Means for Cove Fund Backing Carlsmed from seed to public launch is a highlight of our investment journey. We are thrilled to see the team’s science‑based vision translate into commercial performance, real clinical impact, and now public market traction. Their technology is poised to establish a new standard of care in spine surgery—and we’re honored to have played a part in reaching this turning point. Congratulations to the entire Carlsmed team. The IPO and bell‑ringing are just the beginning of a transformative trajectory—and we look forward to supporting your growth in the years ahead.

Navigating Your First Institutional Round – Insights from Cove Fund Managers Raising your first institutional round is a pivotal milestone in a startup’s journey. It’s not just about securing capital; it’s about laying the foundation for sustainable growth, building lasting relationships, and demonstrating your startup’s potential to investors. The Cove Fund managers have distilled their experience into key pieces of advice for founders embarking on this journey. 1. Set Realistic Valuations Overestimating your startup’s worth can deter potential investors. Ground your valuation in market realities, benchmark against peers, and remain open to feedback. A fair valuation builds credibility and trust. 2. Embrace Capital Efficiency The path from Seed to Series A is fraught with challenges. Prioritize spending on activities that drive key milestones, monitor your burn rate, and iterate swiftly. Demonstrating capital efficiency showcases your startup’s resilience and strategic acumen. 3. Build Investor Relationships Early Don’t wait until you’re seeking funds to connect with investors. Engage early, provide regular updates, and seek feedback. Early relationship-building allows investors to witness your startup’s evolution and increases their confidence in your leadership. 4. Be Coachable Investors value founders who are open to feedback and willing to adapt. Listen actively, implement constructive suggestions, and maintain humility. A coachable founder signals a collaborative spirit and a commitment to growth. Final Thought Securing institutional funding is more than a financial transaction; it’s about forging partnerships that propel your startup forward. By integrating these insights into your approach, you enhance your startup’s appeal and lay the groundwork for enduring success. You can read the full article here: https://lnkd.in/g_cdiEJi About Us Cove Fund is a seed-stage venture capital fund based at UC Irvine’s Beall Applied Innovation, a hub for Southern California entrepreneurs and investors. We invest in early-stage technology and life science companies with differentiated products that address large markets and can achieve major milestones with seed funding. Since our inception, we have invested over $20 million and are actively deploying capital from our $24 million third fund. If you are a Southern California startup seeking funding — or an investor interested in becoming a limited partner — visit us at www.covefund.com.

How Cove Fund’s Local Network Gives Startups an Advantage In the dynamic world of startups, having a strong local network can be the difference between success and stagnation. Cove Fund, a seed-stage venture capital firm based in Irvine, California, leverages its deep roots in the Southern California ecosystem to provide startups with unparalleled support. Cove Fund’s actively managed approach means that investors and syndication partners are not just financiers but strategic partners. They engage directly with executive leadership, offering guidance on business strategies and critical decisions. This hands-on involvement ensures startups benefit from seasoned insights and avoid common pitfalls. The fund’s extensive local network includes investors, advisors, and industry leaders, providing startups with early access to customers, recruits, strategic partners, and later-stage investors. Being deeply embedded in the Southern California ecosystem allows Cove Fund to open doors swiftly, eliminating bureaucratic hurdles and fostering meaningful collaborations. Headquartered at “The Cove” at UC Irvine Beall Applied Innovation, Cove Fund offers startups access to cutting-edge research, academic resources, and a collaborative environment that encourages innovation. This integration enhances the potential for groundbreaking developments and successful ventures. Cove Fund’s unique member engagement model involves investors in deal sourcing, due diligence, and governance, ensuring startups receive comprehensive support from individuals with diverse expertise. This collaborative approach fosters a sense of community and shared purpose, aligning the interests of investors and entrepreneurs. By leveraging its active engagement, robust local network, academic integration, and collaborative investment model, Cove Fund provides startups with the resources and support needed to accelerate growth and achieve long-term success. You can read the full article here - https://lnkd.in/gpGnvyd5 About Us Cove Fund is a seed-stage venture capital fund based at UC Irvine’s Beall Applied Innovation, a hub for Southern California entrepreneurs and investors. We invest in early-stage technology and life science companies with differentiated products that address large markets and can achieve major milestones with seed funding. Since our inception, we have invested over $20 million and are actively deploying capital from our $24 million third fund. If you are a Southern California startup seeking funding — or an investor interested in becoming a limited partner — visit us at www.covefund.com.

Legacy Industries and Aerospace Innovation We’re always on the lookout for sectors where technology can drive real change — and where founders have the chance to build enduring companies. Two areas currently standing out to us at Cove Fund are: 🔹 AI in Legacy Industries Many sectors — logistics, manufacturing, healthcare — still operate with outdated processes and systems. That’s exactly what makes them interesting. Applied AI is finally starting to deliver real value in these spaces, solving operational problems and unlocking new efficiencies. We’re seeing strong founders with deep domain knowledge rethinking how these industries operate. 🔹 Aerospace & Defense Startups Southern California has long been a leader in aerospace and defense, and today that legacy is being reinvented by a new wave of companies. Dual-use technologies — those serving both commercial and defense markets — are gaining traction. Startups are building next-gen space infrastructure, autonomous systems, and national security tools. With rising government interest and billions in VC flowing into the sector, it’s a space we’re keeping a close eye on. At Cove Fund, we invest early in companies building real value. We don’t follow fads — we back founders solving hard problems in sectors that matter. You can read the full article here - https://lnkd.in/gkdks8G9 About Us Cove Fund is a seed-stage venture capital fund based at UC Irvine’s Beall Applied Innovation, a hub for Southern California entrepreneurs and investors. We invest in early-stage technology and life science companies with differentiated products that address large markets and can achieve major milestones with seed funding. Since our inception, we have invested over $20 million and are actively deploying capital from our $24 million third fund. If you are a Southern California startup seeking funding — or an investor interested in becoming a limited partner — visit us at www.covefund.com.