Revolution Ventures III Fund to Continue Investing in Underserved Geographies with Proven Philosophy to Generate Returns
WASHINGTON, D.C., September 18, 2019 – Revolution Ventures today announced a new, oversubscribed $215 million “Revolution Ventures III” (RV3) fund to invest in companies attacking large, multi-billion dollar categories using the same successful approach employed by “Revolution Ventures II” (RV2) and “Revolution Ventures I” (RV1).
The Revolution Ventures leadership team combines unique deal flow from underserved geographies around the country with a differentiated approach to early stage investing: build a right size fund and curate a concentrated portfolio to deliver hands-on, consistent engagement to all portfolio companies, not just a select few that show early breakout potential.
This approach has resulted in leading performance—Revolution Ventures has been a top quartile fund since inception—without the reliance on unpredictable outliers, and the expectation of high losses, which most early stage venture funds assume to be requirements for strong venture returns.
RV2 has a lower loss ratio, more exits (5 of 18 companies have already achieved full or partial exits), and stronger cash returns than is typical of other funds of the same vintage.
“We take a decidedly different approach from most early stage investors who depend on a select few companies in their portfolios to achieve massive returns and offset ‘strikeouts.’ By adhering to strict criteria for investment, and truly partnering with founders—through good times and bad—we create the opportunity for more companies in our portfolio to be returns enhancing,” said Managing Partner Tige Savage.
“In a world of ever-increasing fund sizes, we’ve found a model that has worked well for us for over a decade: acquire significant ownership stakes in companies that meet our disciplined criteria so that we have the time to form true partnerships with founders and help their companies grow. We do fewer deals, concentrating our time and capital in each of our portfolio companies to drive stronger outcomes for management and investors alike,” said Managing Partner David Golden.
“The entrepreneurs we partner with appreciate that our team provides support through the ups and inevitable downs of the startup lifecycle. We lock arms with our founders, driving alignment unchallenged by the trials of scaling a startup and encouraging the audacity it takes to grow into a market-leading company,” said Partner Clara Sieg.
By focusing on markets outside the coastal tech corridors, Revolution Ventures finds visionary entrepreneurs and companies, but in a less intense and competitive investing environment.
“Revolution is focused on backing entrepreneurs in places that are overlooked by most venture capitalists. Revolution Ventures has a proven track record of identifying promising young companies that need capital and expertise, and then actively partnering with them to scale and succeed. This investment philosophy has resulted in outsized returns—and this new fund is poised to benefit from the unique and growing deal flow from Revolution’s national brand and network,” said Revolution Chairman and CEO Steve Case.
Investments from its previous RV2 fund include Washington, D.C. area-based companies Framebridge and Homesnap, Milwaukee-based Bright Cellars, San Diego-based eSUB, Denver-based SRS Acquiom, Detroit-based Bloomscape, and Chicago-based Paro.
Co-founders Steve Case and Investment Partners Tige Savage, David Golden, and Clara Sieg have been collaborating and investing together for over a decade. Revolution Ventures is part of Revolution’s family of funds including Revolution Growth and the Rise of the Rest Seed Fund.
Additional information regarding the Revolution Ventures fund and portfolio is available at www.revolution.com/ventures.
About Revolution Ventures
Revolution Ventures is Revolution’s institutionally-backed early stage fund investing in companies around the country that are attacking large, multi-billion dollar categories. Co-founders Steve Case and Investment Partners Tige Savage, David Golden, and Clara Sieg work with companies that meet their disciplined criteria and form true partnerships with founders to help them build market-leading businesses. Revolution Ventures is headquartered in Washington, D.C. and part of Revolution’s family of funds including Revolution Growth and the Rise of the Rest Seed Fund. Visit us online at revolution.com/ventures or @Revolution.
Tracy Zuckerman Van Grack