It’s become a cliche: Internet start-ups are inexpensive to launch, and you don’t need multi-million dollars from venture capitalists to back you anymore. As a result, more successful startup founders are adding a new hat, and becoming investors.

Founder Collective, the New York City-based fund started by Hunch co-founder Chris Dixon, along with Eric Paley and Dave Frankel has rounded up a number of high-profile serial entrepreneurs including Flickr co-founder Caterina Fake, Vimeo co-founder Zach Klein and LiveOps co-founder Bill Trenchard. The $40 million fund will also include Mark Gerson, who started Gerson Lehrman Group and Micah Rosenbloom, who started Brontes.

Dixon wrote:

“We think of ourselves as part of a new wave venture firms … that have adapted to a world where venture capital is abundant but authentic seed capital and, more importantly, mentorship from experienced entrepreneurs, is scarce.”

The fund will focus on seed investments, and won’t take options on future financing rounds. Partners in the fund are generally entrepreneurs as well and Founder Collective will focus on companies in New York and Boston. Dixon said the new fund was not just a group of angel investors — the partners share in the profits and take leads in investments.

Founder Collective