Today, Grand Ventures unveiled its second fund dedicated to backing early-stage enterprises. Hailing from Grand Rapids, Michigan, the firm disclosed its ambition to take the lead in seed-stage investments, particularly in startups addressing challenges in the fields of fintech, DevOps, and supply chain solutions, as per statements to TechCrunch.
This newly established Fund II, with a substantial $50 million allocation, is overseen by general partners Tim Streit, Camila Noordeloos, and Nathan Owen, elevating the total assets under management to $80 million. Streit expressed enthusiasm for enlisting new limited partners who express interest in venture capital endeavors and technology businesses based outside the conventional Silicon Valley ecosystem.
Grand Ventures, with its unwavering commitment to nurturing entrepreneurs in their embryonic stages, is strategically positioned to significantly influence the emerging industries’ landscape, particularly in regions spanning the Midwest, central Canada, and beyond. The $50 million Fund II found substantial backing from the firm’s existing investor base.
Streit’s satisfaction is palpable when outlining the ideal founder match for Grand Ventures. With his Michigan roots, he believes that his background is instrumental in attracting founders who align with the firm’s ethos. He holds a preference for tenacious founders with a hands-on approach and versatile skill sets. In his view, a two-person founding team with domain expertise and sufficient technical prowess for independent development is the optimal composition.
Currently, Streit’s interest lies in embedded finance, considering it a compelling convergence of vertical SaaS and embedded payment solutions, noting the prevalence of such ventures across the nation.
“There are exceptional founders spread throughout the country creating vertical SaaS solutions that incorporate fintech into these opportunities,” Streit noted. “You might encounter a proficient operator in Tulsa or Ohio who initially developed software for their specific operations. Now, they recognize the potential to offer B2B vendor payment services and are seeking capital solutions.”
Streit remains optimistic about the potential of establishing formidable tech enterprises beyond the confines of San Francisco’s Bay Area, inspired by the successes of their prior investments. The inaugural Grand Ventures fund yielded timely investments in ventures such as TealBook in Toronto, InvestNext in Detroit, Chain.io in Philadelphia, and Astronomer in Cincinnati.
“We were early backers of Astronomer,” Streit reminisced. “In the early days of big data, Astronomer blazed a trail, and they happened to be headquartered in Cincinnati. They identified the need for an enterprise-grade version of Apache Airflow. To see that company flourish from humble Cincinnati beginnings is truly remarkable. And, when you examine the co-investors, it’s an array of top-tier venture capital players.”
Furthermore, Fund II has already been instrumental in deploying capital into ventures like iink Payments, Payload CMS, and Terminal 49.
