Building companies from the ground up, starting with the problem

Atomic is a venture firm that takes a unique approach to investing. Rather than investing in existing startups, Atomic is a venture studio that builds companies from scratch, focusing on tackling well-defined problems before generating solutions. Through its “Zero to One” team, Atomic identifies critical market needs and rigorously tests and validates ideas before co-founding companies with the right founders. This groundwork enables Atomic to support high-impact sectors such as renewable energy, healthcare, housing, fintech, and AI-driven solutions. With hubs in San Francisco, Miami, and New York, Atomic is positioned to address some of society’s most pressing challenges, creating scalable companies grounded in genuine market demand.

A problem-first model and the importance of person-market fit

Atomic’s venture studio model is distinct in its dedication to “problem-market fit” over idea-driven investment. Rather than starting with a product concept, Atomic first identifies significant, complex problems, ensuring that every venture has a purpose rooted in substantial market demand. The firm’s “Zero to One” team – a dedicated R&D group within Atomic – researches and develops ideas from scratch, investigating issues across sectors like healthcare, fintech, and enterprise software. This team doesn’t simply validate ideas; they probe deeply into the underlying causes and challenges to uncover sustainable, impactful solutions.

For example, companies like Butter Payments in FinTech, Hims & Hers ($HIMS) and Found in healthcare, and Exowatt in renewable energy highlight Atomic’s ability to identify critical problems and develop impactful solutions across diverse sectors. When a concept shows promise, Atomic tests prototypes and gathers initial traction before pairing the business opportunity with the right founder to bring it to life.

Beyond product-market fit, Atomic emphasizes person-market fit – the alignment between a founder’s expertise, values, and passion with the specific market problem. Recognizing that the success of a company often depends on the founder’s connection to the problem, Atomic looks for individuals who not only bring domain expertise but also resonate personally with the venture’s mission. This approach means that Atomic doesn’t just select founders; it builds long-term relationships, developing a talent network with a deep understanding of industry-specific challenges. When it’s time to launch a new company, Atomic identifies or brings in founders who are both equipped and motivated to take on the venture, helping them focus on execution rather than the initial hurdles of company creation.

How the zero to one team drives innovation

Atomic’s “Zero to One” team proactively identifies and researches market gaps, acting as an in-house innovation lab focused on areas such as AI in the enterprise, healthcare access, and affordable housing. Through experimentation and prototyping, Atomic pre-validates concepts before recruiting founders, effectively reducing early-stage risks by the time a company is ready to scale. This model not only accelerates growth but also provides a strong foundation for founders to build upon.

This model significantly reduces the typical risks associated with early-stage startups, giving founders a head start and a proven foundation from which to scale.

A symbiotic relationship

Atomic’s partnership with Happiness Capital has been foundational to its success and growth. Happiness Capital joined Atomic as a partner in its second fund and has since remained a close collaborator. This partnership aligns on building companies that balance financial returns with societal impact, creating a “symbiotic relationship” in which Happiness Capital can co-invest in Atomic-backed ventures that resonate with its mission.

The partnership enables both Atomic and Happiness Capital to focus on companies that are more than profitable – they are purpose-built to address real-world problems, reflecting a shared commitment to creating long-term impact and societal value.

A future of purpose-driven innovation

Atomic is poised to expand its problem-first model to tackle an even broader spectrum of societal challenges. With active investments in healthcare, AI, financial services, and renewable energy, the firm continues to push the boundaries of what’s possible in venture creation. The emergence of transformative technologies like AI, including Generative, Vision, NLP, and Speech – has unlocked unprecedented opportunities to enhance personal and professional lives while addressing community-scale problems with unparalleled efficiency. By leveraging these advancements, Atomic is doubling down on its mission to create resource-efficient companies that are not only resilient but also capable of thriving in an increasingly complex global economy. As the venture landscape evolves, Atomic’s studio model remains at the forefront, bridging innovative technology with solutions to the world’s most pressing needs.

Through its commitment to problem-first innovation and a partnership-driven approach, Atomic is poised to continue creating companies that push boundaries. By building each venture on a foundation of well-defined needs and pairing them with founders uniquely suited to address those challenges, Atomic sets a high bar for purposeful company creation. The collaboration with Happiness Capital further enhances this mission, allowing Atomic to pursue ventures that don’t just succeed but make a lasting difference. Through its model, Atomic aims to show that the right problem matched with the right person can drive real, positive change in the world.