Redbud VC has announced the close of its $25 million Fund II, marking a significant step up from its $5 million inaugural fund and underscoring growing investor confidence in its strategy of backing founders from non-traditional backgrounds.
The new fund is backed by a diverse group of investors including the Mizzou Endowment, the founder of Square, AngelList Fund of Funds, and dozens of operators who have built businesses across industries such as construction, manufacturing, payments, healthcare, and technology. The raise follows momentum generated by the firm’s earlier efforts and the public listing of EquipmentShare, a company built by members of the Redbud VC team, on Nasdaq in early 2026.
Founded in Columbia, Missouri, Redbud VC focuses on pre-seed investments ranging from $250,000 to $500,000. Since launching its first fund in 2023, the firm has backed 41 founding teams across more than 20 cities in North America, positioning itself as an emerging player targeting overlooked talent outside traditional venture hubs.
The firm emphasizes its commitment to founders who demonstrate resilience and determination, particularly those from “outsider” backgrounds. Its approach combines active sourcing, extensive outbound outreach, and deep operator networks to access deal flow typically concentrated in coastal markets.
Redbud VC also highlighted its broader mission to strengthen the Midwest startup ecosystem while maintaining connectivity to major venture hubs. Its investor base includes experienced operators who can serve as early customers and strategic partners for portfolio companies, reinforcing the firm’s hands-on model.
Looking ahead, Redbud VC aims to continue expanding its network and influence while maintaining flexibility in its investment strategy, focusing on supporting high-potential founders regardless of geography or pedigree.
KEY QUOTES:
“I’m super pumped to announce our $25M Fund II for Redbud VC, backed by incredible investors like Mizzou Endowment, the founder of Square, AngelList Fund of Funds, and 60 others who’ve built successful traditional or tech businesses. This also builds on the momentum of two of our partners taking EquipmentShare public on Nasdaq in January 2026.”
“We invest $250,000 to $500,000 in people strengthened by struggle with no bias towards pedigree. We love supporting people with outsider backgrounds like ours, but we invest in anyone who doesn’t give up. It’s been a grind over the last five years, starting with the Scale Accelerator, then raising a $5M Fund I for Redbud VC in Spring of 2023, to now. Since 2023, we’ve backed 41 amazing founding teams across more than 20 cities in North America, pacing with top-decile performance.”
Brett Calhoun, Founder At Redbud VC
