NFX is a venture firm focused on pre-seed & seed stage startups. Its goal is to transform how innovators are funded. NFX invests in early-stage companies located in the US and Israel. It focuses on seed-stage ventures, and sometimes also invests in pre-seed and Series A rounds. NFX invests in companies whose model is based on the "network effect", in which every user of the network profits from the additional of another investor. NFX began in 2015 as a startup accelerator that invested $120,000 in each company that participated in the program. The first fund of $150 million, which was closed in November 2017, has invested in 25 companies, with an average investment of $2 million per seed company. The second Fund, which was closed in May 2019, was one of the largest seed funds in Silicon Valley. The fund aimed at facilitating larger amounts than in the past in a large number of companies. In February 2021, the firm has launched NFX.BIO, an early stage fund aimed at funding some of biotechs most successful Scientist-Founders. In October 2021, the firm has launched a $450 Million Fund III dedicated solely to pre-seed and seed-stage startups.