The Washington, DC-based investment firm co-founded by former AOL head Steve Case is expecting to close its first early-stage fund well above target following a rapid fundraise.
Revolution’s latest vehicle, which the firm said should close today on $200m, follows it raising a $450m growth fund in 2011 aimed at later-stage ‘speed-up’ investments.
The firm said it believed the new vehicle was the largest first-time venture fund launched outside of Silicon Valley since the 2008 financial crisis.
The fund, led by AOL co-founder Steve Case, Tige Savage and David Golden, will make about 20 investments over a three-year period if all goes to plan.
Case said, “While we’re big fans of Silicon Valley, we’ve long believed that a lot of great entrepreneurs and great young companies can also be found outside of Silicon Valley.
“With the launch of the Revolution Ventures fund, we’ll be able to deploy early stage capital to help entrepreneurs build great companies in promising new regions that are overlooked by most venture capitalists.”
Revolution said that four investments previously made by the business will become the founding investments for its venture fund.
They were online test prep and course business BenchPrep, business management and marketing software maker Booker, mobile residential real estate app Homesnap and popular health and fitness app RunKeeper.
David York, managing director at Top Tier Capital Partners, a founding limited partner in the fund, said: “We have a long-standing relationship with the Revolution team, and have witnessed first-hand their impressive track record of helping start-ups grow into world-class brands.
“Top Tier Capital is very excited to be a limited partner in the Revolution Ventures fund.”
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