Dear Friends and Partners,
We are pleased to announce the completion of our fundraising for the Revolution Ventures fund. On Monday, we expect to close on $200 million of capital commitments, more than our target amount, and ahead of our expected schedule. The three of us will lead the Revolution Ventures fund and collectively, we are the largest investors in the fund.
Our focus now turns to the excitement of investing in and building innovative, high-growth companies. We start with four great previously-made investments that we are moving into the Fund: BenchPrep (based in Chicago), an online test prep and interactive courses innovator; Booker Software Inc. (based in New York), which manages the way service businesses are run and marketed to consumers; Homesnap (based in Washington, DC), the leading independent mobile residential real estate application; and RunKeeper (based in Boston), the #1 free health and fitness application on iTunes.
As has been our approach over the last decade, our strategy will be one of concentration and influence. By making only a small number of investments each year, we will have the time to really help the entrepreneurs with whom we partner. Tige and David will have day-to-day leadership of our team, and will spend considerable time with each investment. We will roll up our sleeves to partner with great entrepreneurs to build iconic companies. As you might expect, we are particularly interested in companies that pioneer new approaches to disrupt large industries in markets where people are already spending lots of money.
Indeed, in some ways, the Revolution Ventures fund is a “throwback” to the early days of venture capital. We are not just investors, but experienced business builders who have the expertise and passion to be actively involved with the companies we back. In keeping with that throwback VC model, we appreciate the value of multiple, smart perspectives and often welcome other leading investors to join us as backers of promising companies.
The three of us have worked together for more than ten years. We enjoy each other’s company, we trust each other, and our skills complement each other. In the same spirit, we will continue to collaborate closely with our partners at Revolution Growth, the $450 million later-stage investment fund raised two years ago, sharing deal flow, insights, and perspectives. We have worked closely with Revolution Growth’s partners – Steve, Donn Davis, and Ted Leonsis – since well before the founding of Revolution and are proud that they have elected to be investors in Revolution Ventures.
Our visibility and reach are national. We believe there are great entrepreneurs building great companies all over the country, so we are less likely to be investing in Silicon Valley and more likely to seek opportunities elsewhere. We are all very excited about the potential of backing promising entrepreneurs and helping them build special companies.
We are grateful for the friendship and partnership you have shown us over the years, and we hope we will have the opportunity to work with you in this new endeavor. You can learn more about Revolution Ventures fund and our efforts at www.revolution.com/ventures. Needless to say, if you run into companies that you think can change the world, let us know! And, if you find yourself in the neighborhood – Washington or San Francisco – please drop in for a visit.