Swell VC, an early-stage venture capital firm investing in market-defining opportunities, announced it closed Fund II with $11.5 million in commitments. And the fund’s backers include a diverse mix of successful founders, family offices across tech, finance, and real estate, and several NYC tech investors and Fortune 500 executives.
With $19 million in Assets Under Management (AUM) across two funds and a special purpose vehicle (SPV), Swell VC’s portfolio strategy has led to DPI-producing acquisitions like ScienceIO and strong performance from companies like space tech leader Loft Orbital, which serves major customers like Microsoft Azure, Honeywell, and the U.S. Federal Government, and has driven over $100 million in revenue.
Setting Swell VC apart is not just its investment strategy, but a deep commitment to helping founders build exceptional teams. And Ralston and Patil bring over 14 years of experience evaluating and recruiting top-tier talent, honed during their time as early employees at an AI talent assessment startup.
Swell VC’s portfolio is built around startups who have the potential to transform entire industries. And the firm has a track record of backing companies that have received follow-on funding from toptier investors like Union Square Ventures, Spark Capital, and FirstMark Capital. Swell portfolio companies include:
— Loft Orbital – Raised $140 million in Series B funding, providing businesses and governments with plug-and-play satellite infrastructure and software for seamless access to space
— Crisp – Raised $97 million in funding, they are transforming the CPG supply chain to reduce waste and increase profitability through their Collaborative Commerce and data-sharing platform, used by over 6,000 customers and more than 80 of the top 100 CPG brands, including Walmart, Target, Nestlé, and Kraft
— CredalAI – Delivers secure data infrastructure for enterprises building AI apps, counting clients like TransferWise, MongoDB, and Checkr
KEY QUOTES:
“The strength and alignment of our LP base is unique to Swell VC. They’re not just capital allocators but true partners who have believed in us from day one, sharing our vision to build a venture franchise anchored by strong judgment. Many have doubled or even increased their commitments up to 10x from Fund I to Fund II.”
-Jay Patil, Co-Founder and General Partner at Swell VC
“We reject the ‘spray and pray’ approach that dilutes ownership and leads to underperformance. In Fund I, we placed larger checks—6% of the fund—into fewer companies, maximizing ownership where the upside was asymmetric and returns uncapped. Fund II scales this proven model with bigger checks and more ownership, and founders appreciate knowing they’re not one of 50 companies in a fund—we’re in it for the long haul.”
-Rusty Ralston, Co-Founder and General Partner at Swell VC
“What’s unique about Swell VC is their personal commitment to building world-class teams. Rusty and Jay have personally recruited over 50 go-to-market hires across my startups, TapAd and Crisp, helping us find the top 1% of candidates to drive success. They don’t just provide capital—they’re true partners fully invested in our growth. Beyond that, they’ve introduced us to investors, customers, and partners who’ve made a real difference. They’re more than just investors—they’re great partners and friends, always in your corner.”
-Are Traasdahl, CEO of Crisp
