Refinery Ventures’ second fund aimed at getting startups to Series A – TechMac

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Refinery Ventures’ second fund aimed at getting startups to Series A – TechCrunch

Refinery Ventures, a Cincinnati-based enterprise agency, introduced the shut of its second fund with $36 million, which was greater than two instances its first fund.

Fund II is backed by a bunch of LPs, together with Cintrifuse, Nice American Insurance coverage, Western and Southern Insurance coverage and The Cleveland Basis.

The agency invests in enterprise and SaaS “early scale” corporations, a time period managing companion Tim Schigel likes to make use of to explain corporations that secured a seed, however want that “oomph” to get to Sequence A.

“Loads of corporations within the Midwest are getting seed rounds, however many don’t make the hole from seed to Sequence A,” Schigel instructed TechMac. “You might have product market match, however as an alternative of promoting to family and friends, you’re promoting to organizations. Now you want forecasts and different projections you might have by no means finished.”

Most buyers initially give attention to the founder, however few founders, in Schigel’s opinion, have expertise with hypergrowth. It was that lightbulb second that led him to begin Refinery Ventures almost 5 years in the past.

He says it isn’t all the time about being the founder, however should you have been worker No. 2 and even 20, however took the corporate from 20 workers to 200, “you’re well-suited to finish up being the founding father of an organization.”

“That’s the place we need to go searching, for individuals who skilled hypergrowth and might navigate the hole,” Schigel added.

Schigel himself is aware of all in regards to the challenges of hypergrowth in an organization. {An electrical} engineer by commerce, he labored in Cincinnati, however bought his Silicon Valley connections early working with Apple to help P&G.

From there he went into enterprise capital earlier than beginning his personal firm, ShareThis, to maintain observe of on-line content material that’s shared — sure, he’s the one liable for that little sideways “V” icon. He grew the corporate to $50 million in income in lower than 4 years.

Then Schigel launched and managed Cintrifuse, a fund of funds investing in early-stage funds throughout the U.S. like Greycroft, Upfront Ventures and Techstars.

“It gave me a novel and completely different perspective into startups and one I convey to Refinery,” he added.

Previous to the worldwide pandemic, founders have been already leaving the coasts, however Schigel believes the timing was proper for the brand new fund when the pandemic turned “a catalyst such as you couldn’t consider.” His inbox is now filled with former Midwesterners on the lookout for alternatives again house.

Refinery Ventures’ first fund went into 9 startups, together with Edgybees, Astronomer, Torch, Tealbook and Folio Photonics. Two of its portfolio corporations, HALO Well being and Interact, have been acquired.

Schigel expects the brand new fund to put money into an identical quantity, between 10 and 12 startups. Refinery has already invested from the second fund into corporations like Vantage Robotics, RedCircle and StoryTap.

It’s going to additionally make the most of a part of the funding to find and put money into dual-use applied sciences — corporations going after each business and authorities, just like Edgybees and Vantage Robotics.

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