Factorial Capital backs deeply technical founders building AI infrastructure, B2B productivity, and consumer AI products that weren't possible a year ago, using a sourcing network of proven engineers and product builders like the founders of Venmo, Giphy, and Hugging Face who remain full-time operators while sharing directly in the fund's economics. The firm adapts a multi-manager hedge fund structure to early-stage venture, where technical partners focus on their own domains to identify novel AI teams before they reach standard VC deal flow, with carry split evenly between the GP and sourcing partners based on the profits their introductions generate.