Venture capital house Greycroft Partners has brought its capital under management to $1.3bn through the final close of its fifth flagship fund.
Recent years have seen Greycroft invest more aggressively in the seed stage in addition to its traditional Series A round focus, and said it plans to continue that policy with the new $250m vehicle.
“We’re seeing so much opportunity in the current market environment on both coasts where we’re uniquely positioned, but also everywhere else in the country and overseas,” said Greycroft co-founder Dana Settle.
“Recently, our most successful investments weren’t in New York or Los Angeles, they were in Alabama and Chicago. Every major industry and city is currently being transformed through technology.”
The firm recently exited Alabama-based Shipt to Target and Chicago’s Trunk Club and Braintree to Nordstrom and PayPal respectively.
Other notable exits for the firm include the Huffington Post, Pulse and Venmo.
Greycroft said Fund V would be used to continue its strategy of backing B2B and B2C internet and mobile companies, with an emphasis on smaller seed and Series A rounds in capital efficient businesses.
The firm said it believes the strategy allows it to differentiate itself and produce venture-type returns independent of the IPO market.
Firm co-founder Ian Sigalow said, “The key to our strategy has been a flexible approach. Many firms push for 20 per cent or greater ownership early, and that crowds out seed funds and co-investors.
“We have always thought of venture as a long-term, repeat business. As a result we have been focused on building syndicates that provide entrepreneurs the right tools to succeed.”
The firm has been an active investor to the RegTech space, having recently completed a contribution to the $20m Series B of Immuta. The company, which simplifies collaboration across datasets, hopes this capital will help it accelerate the adoption of its data management software.
Other recent RegTech investments from Greycroft include a contribution to cybersecurity company DocAuthority’s $10m round, cybersecurity solution Expel’s $20m Series B, and a commitments to the $50m Series D of Meritech, a contract management company.
Greycroft also highlighted its dedication to diversity within its portfolio company leadership positions, with high profile, female-founded companies currently in its portfolio including BaubleBar, BitPesa, Clique, Thrive Global, and theSkimm, among others.
Settle said, “As a female co-founder, it has always been important for me that we invest in diverse teams; but, this is not a new thing for Greycroft – it is ingrained in our DNA.
“Nearly 50 per cent of our portfolio companies were founded by women or underrepresented groups.”
Greycroft’s most recent additions to its portfolio include e-scooter sharing company Bird, embedded device security company Red Balloon Security and alternative investment platform YieldStreet.
The firm closed its fourth flagship venture capital vehicle on $200m in 2015, and followed that up last year with a $250m hard cap close for its second growth capital fund.
Copyright © 2018 RegTech Analyst
Copyright © 2018 RegTech Analyst
