Seattle’s Madrona Venture Group has actually long been among the most popular early-stage funds in the yard of Amazon and Microsoft. Now, however, the firm is beginning to look beyond the Pacific Northwest with the launch of its $100 million Acceleration Fund, which will broaden its geographic reach to the entire U.S. and offer it a lorry to purchase later rounds.
The new fund will see Madrona make more investments at the Series B and C phase. While Madrona has actually made a variety of financial investments over the years, including some into consumer services, its focus has actually long been on business cloud business, varying from Apptio to Smartsheets and Heptio (which VMware recently acquired). We’ll see a similar focus with this brand-new fund, as Madrona managing director Matt McIlwain informed me, with an emphasis on cloud and used artificial intelligence business. Unlike Madrona’s existing concentrate on the Pacific Northwest– and Seattle in specific– this fund will likewise invest in business across the nation.
” Our long-time strategy has actually been early-stage, broad-based innovation, Pacific Northwest,” McIlwain told me. “We call it an acceleration fund due to the fact that we wish to differentiate it from what some individuals call opportunity funds, which is more of a ‘put more cash into my existing business.’ This is not that. This is brand-new money into terrific companies that have actually reached that initial product-market fit and that want to accelerate their development.”
Madrona also expects that these business have reached product distinction and creators and crucial executives that can offer those items.
McIlwain kept in mind that Madrona has selectively made some of these financial investments in companies like Tigera, Snowflake and Award over the years already. This new fund provides the firm a devoted automobile to buy business where it believes it can include more worth at this later phase.
” When I joined Distinction practically four years ago– the mission was to speed up the business’s growth by finding the finest skill to build a first-rate item and circulation team,” said Distinction CEO Raj Singh. “To do that, you require first-rate partners. Having worked with Matt McIlwain and Madrona on both the Apptio and Amperity board of directors, reaching out to Madrona was high on my top priority list on day one. And they have measured up to my expectations– assisting with customer acquisition, vital hires, key partnerships, and indispensable counsel.”
McIlwain told me that Madrona has yet to make its first investment from the brand-new fund. “But we aspire to discover that initially one that’ll be special enough,” he said.