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Madrona raises record $690m for two new VC funds

Madrona has raised $690 million across two oversubscribed venture capital funds for technology startups based in the Pacific Northwest and beyond  – $430 million for the Madrona Fund 9 and $260 million for the Acceleration Fund 3.

These funds represent an almost 40% increase from the $500 million Madrona raised in 2020, and the firm will continue to initially invest in technology startups at pre-seed through Series C stages.

Madrona Fund 9 will focus on its enduring strategy of supporting Pacific Northwest-based pre-seed, seed, and Series A founders to help them build and scale throughout their company journey. Historically, over 80% of Madrona’s core fund portfolio companies are based in the Pacific Northwest. This reflects the firm’s strong belief that, even in a hybrid world, early-stage companies benefit from easy access to experiential learning and trusted networks, such as those Madrona has built over many years. Current investment themes include modern data stack and DevOps, intelligent applications, fintech, Web3, and the intersections of life and computer/data sciences.

Acceleration Fund 3 will focus on investing in teams that have found product-market fit — generally at the Series B or C stage — and are at a growth inflection point. About half of Madrona’s Acceleration Fund companies are in major tech centres across the country — Silicon Valley, New York City and Salt Lake City, to name a few. These companies are often leveraging AI and ML along with cloud computing to build the best intelligent applications and enabling technologies in the world.

This news follows the appointment of new Madrona Managing Director Karan Mehandru. Mehandru, an experienced VC with strong ties to Seattle, will be based in Madrona’s new Palo Alto office. He will help bring the Seattle mindset of collaborative and durable investing to outstanding companies around the country. Additionally, Madrona keeps expanding the team with new investment professionals, strategic directors, venture partners, and venture growth team members — all with a focus on helping founders build exceptional companies.

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