SaaS Ventures Launches Second Fund And Raises $20 Million In First Close

By Amit Chowdhry ● September 9, 2020
  • SaaS Ventures announced it is investing in early-stage enterprise technology companies in secondary markets throughout the U.S. and Canada with the launch of a second fund (Fund II), which held an initial closing with $20 million of commitments

Maryland-based venture capital firm SaaS Ventures announced it is investing in early-stage enterprise technology companies in secondary markets throughout the U.S. and Canada with the launch of a second fund (Fund II). Fund II held an initial closing in September 2020 with $20 million of commitments and anticipates holding a final closing in early 2021.

SaaS Ventures’ first fund (Fund I) was raised in 2017 with $20 million of commitments and it made investments in over 50 companies. The vast majority of SaaS Ventures’ portfolio companies operate in the manufacturing tech, logistics tech, security tech and eCommerce enablement sectors.

SaaS Ventures is known to be well-positioned as the ideal co-investor for regional- or sector-focused venture capital funds. And this successful effort of targeting growth sectors in non-target geographies has provided jobs to Americans throughout the Heartland and empowered new industries to embrace innovation.

The firm works closely with lead investors for completing financing rounds for a wide array of promising enterprise tech startups. As the COVID-19 pandemic has progressed, the firm’s July 2020 Monthly Economic Analysis noted a 182% and 174% surge in deal volume in June and July, respectively — which demonstrated an increasing appetite for services that are designed to help companies manage through the crisis and prepare for the future.

KEY QUOTES:

“We are incredibly excited to announce the launch of our second fund and continue our mission of supporting talented founders who are innovating the way products are created, moved, secured, and sold. This is a big moment of validation for our model, and we look forward to expanding the work that we are accomplishing alongside our partner funds.”

— Brian Gaister, co-founder of SaaS Ventures

“The companies we invest in are the ones introducing innovation to parts of the economy that traditionally have been left behind. Innovation is no longer relegated to the coastal tech hubs, as talented founders are taking their experience and bringing it to places like Lincoln, NE, Green Bay, WI, and Salt Lake City, UT. We are excited to continue this approach with Fund II and expect ongoing demand in the months and years ahead.”

— Collin Gutman, co-founder and managing partner of SaaS Ventures