Rackhouse Venture Capital (Rackhouse Ventures), a San Francisco-based early-stage AI-focused venture capital firm, announced the final closing of Rackhouse Ventures Fund II, with $45 million in closed capital and commitments. Fund II will facilitate the firm’s commitment to partnering with companies and founders that have achieved product-market fit in overlooked niches and feature a clear and obsessive customer focus.
For this fund, Rackhouse Ventures is focused on founders in GenAI, AI Services, and data-enabled marketplaces. These founders are equipped with talented technology teams and employ hard-to-replicate distribution strategies, enabling them to respond nimbly to the evolving AI landscape and solve present-day problems.
The closing of Fund II comes on the heels of Rackhouse Ventures opening its first office, based in the South of Market (SoMa) neighborhood of San Francisco.
The Rackhouse Ventures team features seasoned industry experts with operational experience in AI/ML. Launched by Uber’s first Head of Data Science, Kevin Novak, Rackhouse Ventures helps pave solutions for early-stage startups with sophisticated AI/ML solutions.
Fund II investments are primarily split between San Francisco-based companies and those across the rest of the U.S., with new investments outside the U.S. in progress. This highlights Rackhouse Ventures’ ability to identify and capitalize on global opportunities in the AI space.
Fund II builds on Rackhouse Ventures’ reputation earned by the successes of the firm’s Fund I portfolio companies. In 2021, Rackhouse Ventures closed its first round at $22.3 million.
Fund I included 32 investments and featured a 69% graduation rate. Four founders from Fund I are participating as LPs in Fund II.
So far, Fund II has completed eight investments, including Onbrand, Insummary, and Crosshatch.io. With its strategic approach, industry expertise, and commitment to supporting visionary founders, Rackhouse Ventures is well-positioned to identify and back the next generation of AI leaders.
KEY QUOTE:
“As Fund II continues to deploy capital and support its portfolio companies, we are confident in our ability to generate strong returns for our investors and create lasting impact in the AI industry. With the close of Fund II we plan to keep doing what we do best – empowering early-stage startups to change the world with data.”
- Kevin Novak
