- Seattle-based venture firm Madrona announced it raised $690 million across two oversubscribed funds. These are the details.
Seattle-based venture firm Madrona announced it raised $690 million across two oversubscribed funds for technology startups based in the Pacific Northwest and beyond.
Funds: Of the $690 million, $430 million is for Madrona Fund 9 and $260 million for Acceleration Fund 3
Metrics: These funds represent an almost 40% increase from the $500 million Madrona raised in 2020 and the firm is going to initially invest in technology startups at pre-seed through Series C stages.
Executives: This news follows the appointment of new Madrona Managing Director Karan Mehandru. Mehandru will be based in Madrona’s new Palo Alto office and he will help bring the Seattle mindset of collaborative and durable investing to outstanding companies around the country. Plus Madrona keeps expanding the team with new investment professionals, strategic directors, venture partners, and venture growth team members.
Madrona Fund 9: Madrona Fund 9 will focus on its enduring strategy of supporting Pacific Northwest-based pre-seed, seed, and Series A founders to help them build and scale throughout their company journey. And historically, over 80% of Madrona’s core fund portfolio companies are based in the Pacific Northwest. The current investment themes include modern data stack and DevOps, intelligent applications (applied AI & ML https://www.ia40.com/ ), fintech, Web3, and the intersections of life and computer/data sciences.
Acceleration Fund 3: Acceleration Fund 3 will focus on investing in teams that have found product-market fit — generally at the Series B or C stage — and are at a growth inflection point. And about half of Madrona’s Acceleration Fund companies are in major tech centers across the country. These companies are often leveraging AI and ML along with cloud computing to build the best intelligent applications and enabling technologies in the world.
KEY QUOTE:
“We are a team of full stack investors who invest from Day One and partner with founders across all dimensions of their business for the long run. Raising these funds during this challenging macro-economic environment speaks to the strength of our strategy and results. We deeply believe in the massive opportunities for founders to build lasting companies over the next decade with roots in the Pacific Northwest. We are also committed to helping companies that have found product-market fit and are headquartered anywhere access and benefit from the Seattle ecosystem at the heart of modern technology disruption. We are especially grateful for the exceptional Madrona team, our broader community, and our investment partners who continue to help build a stronger flywheel for long-term success.”
— Madrona Managing Director Matt McIlwain
