Venture Capital: Craft Ventures Raises $1.12 Billion Across Two Funds

August 16, 2021 | Latest News, News, Venture Capital

The funds will focus on the firm’s core areas of expertise – SaaS and Marketplaces.

Craft Ventures, an early-stage VC firm of “founders backing founders,” closed earlier this month two funds for a combined $1.12 billion fundraising –  Craft Ventures III ($612 million) and Craft Ventures Growth I ($510 million). The new growth fund will round off the firm’s investment strategies, covering startups in both early and growth stages. (CROWDFUND INSIDER)

With the new raising, Craft’s assets under management are $2 billion.

Craft Ventures

The firm has quite a record for backing early-stage startups that went on to become unicorns. These include Addepar, Bird, Bitgo, ClickUp, Multicoin, Neuralink, Pipe, Reddit, Sourcegraph, and SpaceX.

As founders, some of Craft’s partners created Yammer, PayPal (David Sacks), Big Fish Games (Bill Lee), StubHub (Jeff Fluhr), and Earthlink and Boingo (Sky Dayton).

In fact, every member of the Craft team has either been a unicorn founder or a successful operator, the firm said in a blog.

Some of Craft’s partners were also angel investors in iconic companies such as Affirm, Airbnb, Eventbrite, Facebook, Houzz, Slack, Tesla, Trulia, Twilio, Twitter, Uber, and Warby Parker.

For its current funds, the firm maintains that its investment strategies will revolve around the SaaS and Marketplace sectors, where it has “unique expertise.”

SaaS startups are attractive for their “predictable, compounding recurring revenue” and potential to go viral with a successful product.

On the other hand, Marketplaces make good investments for their network, liquidity, and deep moats.

Expanded teams

Craft has doubled the size of its team responsible for Ventures Fund III.

Furthermore, Brian Murray, Liany Painter, Bryan Rosenblatt, and Michael Tam have joined the investment team as new partners.

Related Story:  Elon Musk’s Neuralink Raises $205M For Its Brain-Machine Interface

Images credit: Craft Ventures                                                   

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