The VC’s latest haul targets both early and late-stage startups.

Seattle-based Madrona Venture Group has obtained more than $500 million in the largest-ever fundraising effort in its year history. Madrona has earmarked $345 million out of this capital for its eighth ‘early-stage’ fund targeting 35-to-40 Pacific Northwest tech startups. The balance amount of $160 million is for its second “acceleration fund” for later-stage companies in North America. (GeekWire)

According to Madrona’s announcement, the funding also marks the largest raise in Seattle for technology start-ups. It said it closed both funds simultaneously, and that they were heavily oversubscribed.

The firm picks investment opportunities in various technology sectors including cloud computing, applied AI/ML, and SAAS.

Madrona Venture Fund 8 ($345 million)

Madrona’s eighth fund will support, as in the past, start-ups at seed and stage A that have found “founder-market fit.”

Check size will range from $ 500,000-$ 8 million.

The venture capitalist typically helps these start-ups to build and scale throughout their life – from founding to maturity.

Madrona Acceleration Fund 2 ($160 million)

Madrona’s second accelerator fund will invest in start-ups at series B or C stages that have found “product-market fit.”

Typical investments will be in the range of $ 8 million-$ 12 million.

In the last five years, six Madrona-funded start-ups have gone public through IPOs, including Smartsheet (NYSE: SMAR), Snowflake (NYSE: SNOW), and Accolade (NASDAQ: ACCD).

The Seattle Mindset

“The Seattle Mindset, combining curiosity, iteration, and agility, has proven to build some of the most innovative and valuable companies in the world,” commented Matt McIlwain, Managing Director.

“Madrona’s new funds enable us to continue our two complementary strategies – working with entrepreneurs who have founder-market fit from Day One through the full company journey and providing that same hands-on approach to companies that have reached product-market fit and are accelerating their growth.”

“While it is increasingly possible for companies to be built anywhere, few places have access to talent, understanding of market problems, and the ability to build emerging solutions like greater Seattle,” McIlwain added.

Madrona raised $ 300 million for its seventh fund in 2018, and $ 100 million last year for its maiden acceleration fund.

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