Steve Case’s Rise of the Rest Seed Fund announced its first eight investments on February 14, 2018, and named Reid Hoffman, Megan Smith, Michael Bloomberg and Roger Ferguson as new investors. The $150 million fund said it would back startups outside established coastal technology hubs, partnering with regional investors.
Which companies did Steve Case’s Rise of the Rest fund invest in first?
Revolution’s February 14, 2018 announcement named these eight companies and their home cities:
| Company | Home city | Business described in the announcement |
|---|---|---|
| Catalyte | Baltimore | AI-enabled recruiting and talent identification |
| Cotopaxi | Salt Lake City | Outdoor goods |
| ENGAGE Talent | Charleston | AI-enabled recruiting and talent identification |
| Losant | Cincinnati | Enterprise internet of things (IoT) |
| SafeChain | Columbus | Property transaction technology |
| SEEVA | Seattle | Vehicle mobility systems |
| ZenBusiness | Austin | Business formation |
| Zylo | Indianapolis | SaaS management |
The announcement’s descriptions are brief and identify the companies’ fields; they do not provide investment amounts or terms for each company. Revolution’s announcement is the source for the list, locations and descriptions.
Who joined the fund as investors?
The February 2018 announcement added Michael Bloomberg, Roger Ferguson, Reid Hoffman and Megan Smith as investors. Steve Case, Revolution’s chairman and CEO, and J.D. Vance, identified in the release as managing partner of the Rise of the Rest Seed Fund, were already associated with the fund.
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How was the $150 million fund intended to invest?
At its December 2017 launch, Revolution said the $150 million fund would invest in startups outside Silicon Valley and make initial investments of up to $1 million in partnership with regional investors. It said it would not lead funding rounds or take board seats, describing its intended role as an ally and catalyst rather than the lead investor. Those were the fund’s stated plans, not a guarantee of how every investment would be structured. Revolution’s fund-launch announcement set out those terms.
To explain the geographic rationale, Revolution’s 2017 launch announcement said 75 percent of venture capital went to California, New York and Massachusetts in the prior year. That is the firm’s cited statistic, not an independently verified figure here. The Rise of the Rest bus tour was part of the fund’s broader effort to raise the visibility of startups in other cities: Revolution said the tour had covered more than 8,000 miles and 33 cities by the February 2018 announcement.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What did Revolution report about the fund later?
In October 2019, Revolution said the first fund had deployed capital to nearly 130 companies in nearly 70 cities across 32 states, Washington, D.C., and Puerto Rico. The firm also said nearly a dozen portfolio companies had raised money at valuations above $100 million. These are Revolution’s figures as reported in 2019, not current portfolio totals or independently verified valuations. The 2019 count describes the fund’s later deployment and should not be confused with the eight companies named in its first-investments announcement. Revolution’s second-fund announcement reported those figures.
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- Author: Guillebeau, Chris.
- Publisher: Currency
- Pages: 304
- Publication Date: 2012-05-08
- Edition: NO-VALUE
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