Soul Street Ventures is a Houston and St. Louis-based VC firm with a hands-on approach to early-stage investing. And Soul Street prioritizes high-touch partnerships, focusing on a smaller, curated portfolio to provide founders with deep operational and strategic support—going beyond just writing a check. Pulse 2.0 interviewed Soul Street Ventures co-founder and managing partner Prasanth Chilukuri to learn more about the firm.
Prasanth Chilukuri’s Background
Could you tell me more about your background? Chilukuri said:
“I began my career in 2012 when I joined a private equity-backed oil and gas startup as one of the early management team members, around the sixth employee. We experienced significant growth, securing $600 million in funding from Apollo and Riverstone. In 2018, we achieved a major milestone by taking the company public through a reverse merger, which was especially meaningful for me as a Series A investor.”
“In 2016, I co-founded Tekmetric (also known as Sparkplug Studios), a software company focused on the automotive industry. I initially served as CFO and later became co-CEO, helping to grow the company to a valuation in the hundreds of millions.”
“In 2022, I transitioned out of Tekmetric and co-founded my current venture, Soul Street Ventures (also known as Soul Street Asset Management), in 2023, where I now serve as Managing Partner.”
Evolution Of The Firm’s Thesis
How has your firm’s thesis evolved over time? Chilukuri noted:
“Our investment approach has always placed a strong emphasis on understanding the founders of the companies we engage with. My co-founder Scott and I prioritize building relationships with founders to grasp their mindset, conviction, and vision for growth. This focus has been a consistent part of our strategy.”
“However, we’ve broadened our scope beyond just B2B core operations companies. We’ve discovered promising opportunities in areas we initially might not have considered. For example, we recently invested in a sports tech startup in LA called The Futures App. The founder’s passion and deep market understanding convinced us it was a great fit.”
“We’ve also invested in a cybersecurity venture with an experienced founder who’s in the process of turning the business around. While our focus on founders remains, we’re now more open to exploring lower-risk opportunities across various industries that can still deliver exceptional returns for our investors.”
Favorite Memory
What has been your favorite memory working for your firm so far? Chilukuri reflected:
“One of the highlights has been closing deals with founders. I find it deeply rewarding to provide guidance and support to the entrepreneurs we work with, drawing on my own experiences as a founder.”
“I especially appreciate the candid conversations I have with founders about the challenges of running a business. Sharing the mistakes I made as a CEO to help them avoid similar pitfalls feels almost therapeutic for both of us.”
“I also treasure the moments when I can dive into the details with our portfolio companies, like Mallard Bay. Advising them on hiring plans, marketing strategies, and other key business decisions is incredibly fulfilling. Leveraging my experience to genuinely support and empower the founders we partner with to achieve success makes this role so rewarding.”
Significant Milestones
What have been some of your firm’s most significant milestones? Chilukuri cited:
“Our firm has achieved some remarkable milestones so far. One of the most impressive was raising $20 million for our fund in just 40 days. This rapid fundraising was a standout achievement, especially for an early-stage venture firm like ours, and it highlights our ability to attract and secure capital with remarkable speed.”
“Another significant milestone was making our first two investments within a very short timeframe. We closed our first investment in June and followed it up with a second by July or August. The ability to quickly deploy capital underscores our agility and strategic focus, allowing us to seize opportunities as they arise.”
“Additionally, we’ve led nearly every investment round for our portfolio companies despite having a lean team consisting of just myself and my co-founder. This demonstrates our leadership and commitment to driving the success of our portfolio. These early achievements—rapid fundraising, swift capital deployment, and leading investment rounds—are strong indicators of our firm’s execution capabilities. They set Soul Street Ventures apart and show we can move quickly and decisively in a competitive market.”
Investment Success Stories
Would you like to share any specific investment success stories? Chilukuri highlighted:
“Soul Street Ventures is still a young firm, less than a year old, so we haven’t seen any returns or exits from our investments yet. Our portfolio companies are in the early stages of growth, and our main focus right now is on deploying capital rather than on realized successes.”
“We’re still in the process of building our portfolio and haven’t yet reached the point where we can showcase significant returns.”
Industry Focus
What are some of the industries that your firm is focused on? Chilukuri emphasized:
“Our primary focus is on SaaS (software-as-a-service) and software in general, and we haven’t deviated much from the software industry. That said, we’ve started exploring other sectors as well, including hospitality, sports tech, and the hunting and fishing industry through Mallard Bay. We’re also engaged in the private credit space with Sirvatus and are currently working on an exciting investment in the oil and gas sector.”
“Although we are industry agnostic, we consistently seek “core solutions” essential to a business’s day-to-day operations. These solutions, while applicable across different industries, are the common thread that guides the investments we pursue.”
Differentiation From Other Firms
What differentiates Soul Street from other firms? Chilukuri noted:
“What truly sets us apart is our founder-centric approach. My co-founder Scott and I place a significant emphasis on getting to know the founders we work with. We invest time in understanding their vision and mission, ensuring that we align ourselves with their goals. We view our relationship with them as a genuine partnership rather than a mere transactional investment.”
“Our operational approach is notably hands-on and holistic. We don’t simply sit on the board; instead, we are deeply involved in the business, offering guidance and support across various aspects. We consider ourselves an extension of the founding team, committed to contributing meaningfully to their success.”
“Another key differentiator is our selective portfolio strategy. Rather than spreading ourselves thin across many investments, we intentionally focus on working with just 10-12 companies in our first fund. This lets us focus highly on each company and provide more dedicated support.”
“Despite this selective approach, Scott and I have managed to run the firm efficiently, leveraging streamlined processes and systems. We’ve successfully led almost every investment round for our portfolio without needing a large team.”
“Ultimately, what distinguishes us is our commitment to responsibility and intention beyond just financial metrics. We are dedicated to building businesses in alignment with our founders’ vision, which is the essence of our differentiated approach.”
Challenges Faced
What are some of the challenges you faced while working at the firm? Chilukuri acknowledged:
“My biggest challenge has been transitioning from an operator to an investor. This role is entirely new for me, and adjusting my mindset has been essential. As an operator, my instinct was to dive directly into the work. However, in my current role as an investor, I’ve had to shift to a more coaching-oriented approach.”
“To navigate this change, I’ve had to deliberately step back and detach myself from the hands-on aspects. Instead of doing the work myself, I’ve learned to offer guidance and allow the founders to execute their vision. It’s been a valuable learning experience in patience and trust, recognizing that my role is to provide advice rather than to control every detail.”
“The mental shift from being deeply involved to adopting a more advisory role has certainly been challenging. But by consciously stepping back, I’ve found that I can better support our portfolio companies. It’s about offering guidance and empowering the founders to lead their businesses.”
“Overall, the main obstacle has been adjusting my mindset to fit this new investor role. It’s an ongoing process, but I’m navigating it by focusing on coaching and empowering the founders we work with.”
Future Goals
What are some of your firm’s future goals? Chilukuri pointed out:
“Looking ahead, we have some exciting plans for the growth of our firm. We’re in the process of launching a second venture capital fund, which will enable us to continue deploying capital into promising startups. This new fund represents a significant step in expanding our investment capabilities and supporting emerging businesses.”
“In addition to this, we are launching a private credit fund in partnership with Sirvatus. This move into private credit is part of our broader vision to evolve Soul Street Ventures into a more comprehensive asset management firm. By expanding into this space, we aim to diversify our offerings and strengthen our position in the market.”
“Our long-term goal is to not only focus on venture capital but also to venture into private equity investments. We envision ourselves becoming a diversified platform that can offer family office investors various opportunities, including venture capital, private credit, and private equity investments. We’re excited about these developments and the future growth of Soul Street Ventures, as we work to scale our investment capabilities and provide our investors with an increasingly diverse array of options.”
Additional Thoughts
Any other topics you would like to discuss? Chilukuri concluded:
“There’s a notable statistic that women are expected to inherit the majority of wealth over the next 20-50 years. This represents a significant shift that I find fascinating. However, there’s also an increasing trend where women tend to be more risk-averse and often prefer to donate wealth rather than invest it.”
“This highlights a crucial responsibility for the venture capital industry. To address the gender gap in investing, we need to make a concerted effort to educate and engage female investors. By doing so, we can better harness this impending wealth transfer and work towards a more inclusive and equitable investment landscape.”
