Revolution Ventures, saw an oversubscribed Third Fund yesterday. In sync, with its overall philosophy, the fund would cater to capital demands from outside the hotbeds. As a result, the parent company along with its baby outfits are working towards promoting entrepreneurialism. Primary hotbeds so far have been Bay Area, New York and Los Angeles, while these focus on Indianapolis, Milwaukee, Tampa and the like. So far, investors have seen this kind of action as heretical. Moreover, the idea is considered flawed. This changed with Revolution transforming market scape in 2005.
Currently, it looks like it is reaping benefits of that bold move about 15years back. Its Series A and B of the outfit closed on a USD 215 million yesterday, which is higher than even Revolution Ventures I and II. These closed at USD 200 million. To grasp the depth of portfolio, it is pertinent to understand the variety around it. Revolution has under its umbrella – Bloomscape, Paro, Framebridge, Bright Cellars, and Policy Genius. This here is as wide as it can get – finance professional recruitment firms to wine clubs and framing business to insurtech companies.
The Road Less Taken – Glimpse into Revolution’s Journey So Far
Partner at Revolution Ventures, Clara Siege, explains how it worked for Revolution Ventures. Mainly, they looked for a legacy industry in a region. Then looked for a supportive angel and seed network. Eventually, evaluated costs to scale and went for it. It is seeing competition, mainly, from that is arising from local ecosystem. But, it is expected to grow more intense over the coming years as more and more investors will observe growth in 2nd and 3rd tier markets.
Managing partner of Revolution Ventures, Tige Savage, sums up the journey till this point succinctly. He notes that it was risky and they had hiccups. But looking back, some of the most intense growth came from these off the beat investment activities.