- Revolution Ventures announced it raised a new oversubscribed $215 million “Revolution Ventures III” (RV3) fund
Revolution Ventures announced it recently raised a new oversubscribed $215 million “Revolution Ventures III” (RV3) fund for investing in companies that are taking on large multi-billion dollar categories using the same successful approach as “Revolution Ventures II” (RV2) and “Revolution Ventures I” (RV1).
The Revolution Ventures leadership team is combining unique deal flow from underserved geographies around the country with a differentiated approach to early-stage investing, which is to build a right size fund and set up a curate a concentrated portfolio for delivering hands-on consistent engagement to all portfolio companies rather than just selecting a few that show early breakout potential.
“Revolution is focused on backing entrepreneurs in places that are overlooked by most venture capitalists. Revolution Ventures has a proven track record of identifying promising young companies that need capital and expertise, and then actively partnering with them to scale and succeed,” said Revolution Chairman and CEO Steve Case. “This investment philosophy has resulted in outsized returns—and this new fund is poised to benefit from the unique and growing deal flow from Revolution’s national brand and network.”
And this approach has resulted in leading performance. Revolution Ventures has been a top-quartile fund since launching without having to rely on unpredictable outliers and the expectation of high losses — which most early-stage venture funds assume to be requirements for strong venture returns.
RV2 has a lower loss ratio, more exits (5 out of 18 companies have already achieved full or partial exits), and stronger cash returns than is typical of other funds of the same vintage.
“We take a decidedly different approach from most early-stage investors who depend on a select few companies in their portfolios to achieve massive returns and offset ‘strikeouts.’ By adhering to strict criteria for investment, and truly partnering with founders—through good times and bad—we create the opportunity for more companies in our portfolio to be returns enhancing,” added Managing Partner Tige Savage.
Revolution Ventures focuses on markets outside of the coastal tech corridors. And it finds visionary entrepreneurs and companies in less intense and competitive investing environments.
“In a world of ever-increasing fund sizes, we’ve found a model that has worked well for us for over a decade: acquire significant ownership stakes in companies that meet our disciplined criteria so that we have the time to form true partnerships with founders and help their companies grow. We do fewer deals, concentrating our time and capital in each of our portfolio companies to drive stronger outcomes for management and investors alike,” explained Managing Partner David Golden.
Some of the investments from the RV2 fund include Chicago-based Paro, Denver-based SRS Acquiom, Detroit-based Bloomscape, Milwaukee-based Bright Cellars, San Diego-based eSUB, and Washington, D.C. area-based Framebridge and Homesnap.
“The entrepreneurs we partner with appreciate that our team provides support through the ups and inevitable downs of the startup lifecycle. We lock arms with our founders, driving alignment unchallenged by the trials of scaling a startup and encouraging the audacity it takes to grow into a market-leading company,” commented Partner Clara Sieg.
Case, Savage, Golden, and Sieg have been collaborating and investing together for more than a decade. And they work with companies that meet their disciplined criteria and form true partnerships with founders to help them build market-leading businesses.
Revolution Ventures is part of Revolution’s family of funds including Revolution Growth and the Rise of the Rest Seed Fund.
