Dynamo Ventures announced the closing of its third fund at $54 million, more than tripling the size of its inaugural fund. The raise emphasizes Dynamo’s focus on supporting early-stage founders who are reimagining how goods are made, moved, and monetized across supply chains, logistics, and the foundational industries that power the global economy.
This major milestone coincided with another significant development: a secondary transaction that provided early liquidity to LPs in Dynamo’s $18 million Fund I (2016).
Kline Hill Partners bought a significant stake in the fund, creating returns over 4x and signaling strong conviction in Dynamo’s portfolio. And the transaction unlocked value for investors who backed the firm over eight years ago, with overall performance placing the fund in the top decile of its vintage. While secondaries once signaled distress, they’ve now become a core part of the venture liquidity playbook.
Dynamo’s $54 million Fund III arrives at a pivotal moment and launches at a time when innovation in the physical economy has never been more urgent. Instead of chasing hype cycles, Dynamo focuses on sectors where digitization is overdue: manufacturing, logistics, transportation, and commerce infrastructure. And the firm brings deep operational expertise and a global network to the table, backing companies like Stord (omnichannel fulfillment and eCommerce technology), Sennder (digital freight brokerage), Gatik (autonomous middle-mile delivery), and Raft (AI-powered freight forwarding operations) that are modernizing the movement of goods and redefining how industries operate at scale.
Madelyn O’Farrell was promoted to Principal in Fund III, recognizing her instrumental role in the firm’s sourcing, selection, and stewardship efforts. The team also welcomes Bola Adegbulu, a seasoned founder and investor, as a Principal. Bola will complement the team with his experience in incubating and investing at the inception stage in AI-native businesses.
KEY QUOTES:
“In a market where traditional exits via IPOs and M&A remain sluggish, we’ve embraced creative avenues to generate liquidity. This secondary sale not only validates the strength of our first fund, featuring four fund returners, including unicorns, but also reflects our responsibility to build for the long haul while returning cash to our earliest backers.”
Santosh Sankar, General Partner at Dynamo Ventures
“We’re pleased to provide an interim solution to Dynamo Ventures and its investors, unlocking liquidity for their dedicated pool of limited partners who have supported the firm’s talented team for nearly a decade. We believe Dynamo’s portfolio, which includes some very promising assets, is well-positioned to realize its full potential.”
Chris Bull, Managing Director at Kline Hill Partners
“We’ve always believed that the supply chain is more than trucks and warehouses—it’s the industrial backbone of the global economy. This fund gives us the firepower to keep backing the most ambitious and relentless founders reimagining how goods move.”
Jon Bradford, Managing Partner
