San Francisco — Venture capital firm Paradigm Shift Partners unveiled a groundbreaking new fund Thursday dedicated exclusively to funding solutions for problems that haven’t been identified, validated, or in some cases, even imagined.
The $500 million “Pre-Problem Fund” will invest in startups building products to solve issues that current humans don’t have, focusing on what managing partner Derek Thornwell calls “anticipatory disruption.”
“Why wait for a problem to emerge when you can build the solution now?” Thornwell explained from the firm’s SoMa office, gesturing at a whiteboard covered in buzzwords. “We’re betting on founders with the vision to create problems— I mean, identify problems— before anyone realizes they need solving.”
The fund’s first investment went to a startup called NeedStream, which uses AI to analyze users’ lives and generate personalized problems they should worry about. “Most people waste time solving problems they already have,” said NeedStream founder Zara Chen. “We help them optimize their anxiety.”
Early portfolio companies include:
- Synth: A $30/month subscription that texts you inspirational quotes you didn’t ask for
- Unbundl: An app that separates your smartphone into 47 different devices you have to carry separately
- AirLock: Smart home technology that randomly locks you out of rooms “to encourage spontaneity”
- MealGap: A food delivery service that brings you meals you specifically said you didn’t want
“The market for unnecessary solutions is severely underserved,” noted Thornwell. “There’s billions of dollars sitting on the table waiting for someone brave enough to solve problems people are actively not having.”
Industry analysts remain skeptical. “This feels like satire,” said tech researcher Maria Kowalski. “But then again, so does most of venture capital lately.”
The fund is currently accepting pitches from founders who can demonstrate zero market demand, negative unit economics, and a business model that makes investors say “Wait, what?”
Paradigm Shift Partners plans to raise a second fund next quarter focused on solutions to problems that were already solved decades ago, tentatively titled “Re-Invention Capital.”
When asked about expected returns, Thornwell smiled. “Returns? That’s a problem for future investors. We’re disrupting the concept of profitability itself.”
