Drive Capital returned $500M to its investors, proving it could rebuild and succeed even after an internal leadership split.
Columbus-based venture capital firm Drive Capital has emerged stronger than ever after a leadership shake-up that saw the departure of one of its co-founders. By focusing on grounded, mid-range exits and a contrarian investment approach, Drive recently made headlines with a $500 million return to its investors—demonstrating that success can be achieved outside Silicon Valley and even after a crisis.
Founders’ Split: A Crisis or Turning Point?
In 2022, Drive Capital faced a critical internal transition: the departure of its two founding partners, Chris Olsen and Mark Kvamme—both formerly of Sequoia Capital. The unexpected split raised concerns among limited partners and industry observers, with many questioning whether the firm could survive. Kvamme went on to establish the Ohio Fund, an investment vehicle focused on statewide economic development. Meanwhile, Olsen assumed sole leadership of Drive Capital and initiated a strategic pivot that would soon redefine the firm’s trajectory.
A $500 Million Return in a Week
In May 2025, Drive stunned the venture world by returning $500 million in liquidity to its LPs in a single week. This milestone included the distribution of $140 million in Root Insurance shares, along with exits from two other companies—one of them being the AI-driven health automation firm Thoughtful Automation. The third exit remains undisclosed. In a tight liquidity environment, this performance was both rare and noteworthy.
“I don’t know of any other venture firm that’s achieved this level of liquidity recently,” Olsen told TechCrunch. His comment underscores Drive’s emergence as a strong player outside the traditional coastal VC hubs.
Rejecting Unicorn Chasing for Realistic Returns
Olsen’s strategy diverges from the Silicon Valley norm. While many investors pursue unicorns and decacorns—startups valued at $1 billion or $10 billion—Drive Capital is focused on companies that can realistically exit at around $3 billion.
“The media and Sand Hill Road talk about $50 billion or $100 billion outcomes,” Olsen said. “But in the past 20 years, there have only been 12 exits above $50 billion in the U.S. In contrast, there have been 127 IPOs above $3 billion, and hundreds of M&A events at that level.”
According to Olsen, focusing on these more achievable exits allows Drive to generate frequent, repeatable returns—something that adds up over time.
Thoughtful Automation: A Sub-Billion Exit with Major Impact
Thoughtful Automation was acquired by private equity firm New Mountain Capital, which then merged it with two other companies to create Smarter Technologies. While the deal was under $1 billion, Olsen described it as “near fund-returning” for Drive Capital.
The key was ownership: Drive held approximately 30% of the company, far above the typical 10% seen in most Silicon Valley deals. This outsized stake resulted from Drive being the sole venture investor through multiple funding rounds, increasing both influence and return on exit.
Ownership Depth: A Differentiator in Strategy
One of Drive’s core strengths lies in its deep ownership model. Unlike many VCs that co-invest with others at various stages, Drive often takes the lead—and sometimes the only—position across several rounds. This not only increases exit returns but also allows the firm to steer company direction more effectively and support long-term value creation.
The Ohio Fund: A Parallel but Complementary Path
On the other side of the split, Mark Kvamme’s Ohio Fund has pursued a broader investment mandate that includes infrastructure, real estate, industrial manufacturing, and tech. Though their methods differ, both Drive Capital and the Ohio Fund are contributing to the economic revitalization of Ohio and the broader Midwest.
Conclusion: Resilience, Strategy, and Sustainable Growth
Drive Capital has proven that adversity can be a launchpad for reinvention. Emerging from a founder split, the firm has doubled down on realistic, high-ownership investments that deliver consistent returns. Its $500 million liquidity return in 2025 is more than just a financial win—it’s a statement. Drive is now seen not only as a resilient Midwest VC firm but also as a model for how smart strategy can outperform hype.
