Madrona simply introduced its greatest fund ever, closing on $770M as different enterprise funds develop smaller

0
22
Madrona simply introduced its greatest fund ever, closing on 0M as different enterprise funds develop smaller


Seattle-based Madrona Capital is celebrating its 30 years in enterprise by elevating $770 million in contemporary capital. That is the agency’s largest fundraise up to now, exceeding $690 million throughout two funds Madrona closed in 2022. 

Whereas an 11% capital pool upsize could not appear vital, any enhance at a time when many enterprise outfits are pressured to cut back their fund hauls is an indication that restricted companions are excited in regards to the agency’s prospects and up to date monitor file. 

Madrona’s managing director, Matt McIlwain, advised TechCrunch that it helped that final yr — in a market the place exits have been few and much between — the agency offered a couple of portfolio firms and distributed capital to its buyers. The agency’s current exits embrace Lexion, which offered to Docusign for $165 million, and Octo AI, which Nvidia acquired for a reported $250 million.

“The LP neighborhood is mostly involved about distributions,” McIlwain mentioned. “I feel we stood out as a agency that had accomplished rather well on that entrance, not simply this previous yr, however over a few years.”

Madrona began as a gaggle of “tremendous angels” who wrote a verify to a web-based bookseller, Amazon, in 1995. The agency has since advanced right into a multi-stage investor that has backed firms like Redfin, Smartsheet, Snowflake and, extra not too long ago, AI startups Typeface and Runway.

Though Madrona undoubtedly benefited from being the biggest VC agency in the identical geographic location as Amazon and Microsoft, it determined to enterprise past Seattle by opening an workplace in Silicon Valley in 2022.

McIlwain mentioned that the contemporary capital shall be used to spend money on AI purposes in domains starting from journey to life sciences, in addition to in infrastructure firms that “can take away friction” between foundational fashions and customers. The agency will again about 30 pre-seed, seed and Sequence A startups from its roughly $490 million early-stage fund, and the remaining capital will go in direction of 12 firms elevating their Sequence B or Sequence C.

As Madrona enters its fourth decade, this can be very optimistic about what’s forward in 2025. McIlwain described the present situations as a ‘risk-on mindset’ that can assist foster entrepreneurship and create worth.



Supply hyperlink

LEAVE A REPLY

Please enter your comment!
Please enter your name here