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Provo, Utah – RevRoad Capital has successfully raised $61 million for its debut fund, primarily aimed at early-stage startups. Although based in Provo, Utah, the fund is set to broaden its investment scope beyond the state lines.
Originally established in 2017, RevRoad was a venture services firm that provided startups with a two-year program offering a range of resources. These included legal services, sales assistance, and mentorship, all in exchange for equity. However, the firm lacked the capital to invest in the startups that completed its program. This new fund aims to fill that gap.
David Mann, who has been with RevRoad since 2018, is the executive managing director of the new fund. Mann joined RevRoad after leaving his position as the director of Amazon Game Studio and has been instrumental in shaping the venture fund.
The fundraising environment has been challenging, especially for first-time funds. According to Q3 data from PitchBook, first-time funds are on track to close the smallest amount of funds and raise the lowest amount of capital in 2023 compared to the last decade. Despite these market pressures, RevRoad Capital found success with a specific group of LPs: women operators in Utah, who made up 30% of the fund’s LP base.
The majority of RevRoad Capital’s investments will be in startups that have gone through RevRoad’s program. This gives the firm the advantage of having two years of data and due diligence on a startup before investing. While the current focus is on Utah-based companies, the fund plans to expand its geographical reach as RevRoad grows.
The fund will invest in a variety of sectors, including electric vehicles, AI, SaaS, retail, and manufacturing. Companies that receive investment from RevRoad Capital will also have access to many of RevRoad’s startup services, regardless of whether they initially went through the program.
This move by RevRoad Capital not only strengthens Utah’s startup ecosystem but also sets the stage for nationwide expansion. With $61 million at its disposal, the fund is poised to make a significant impact on early-stage startups both in Utah and beyond.