Venture capital firm Greycroft has closed Greycroft V, its core early stage fund at USD250 million in capital commitments. With the formation of Greycroft V, the firm now manages USD1.3 billion.
In recent years Greycroft has been more aggressively investing in seed stage companies in addition to traditional Series A companies. To accommodate the increase in global deal flow, the firm has grown its investment team, which now numbers over 20 investment professionals between New York and Los Angeles.
“We’re seeing so much opportunity in the current market environment on both coasts where we’re uniquely positioned, but also everywhere else in the country and overseas,” says Dana Settle, co-founder at Greycroft. “Recently, our most successful investments weren’t in New York or Los Angeles, they were in Alabama and Chicago. Every major industry and city is currently being transformed through technology.”
Examples of portfolio companies that have been acquired in those locations include Shipt, based in Birmingham, Alabama, which was acquired by Target; and, Trunk Club and Braintree, both based in Chicago, acquired by Nordstrom and PayPal, respectively. In total, Greycroft has had 31 successful exits across its funds. Other notable exits include Buddy Media, Huffington Post, Makers Studio, Plated, Pulse, Vettery, and Venmo.
Greycroft V will follow the same strategy as the previous four funds, focusing on B2B and B2C Internet and mobile companies, with an emphasis on smaller seed and Series A rounds in capital efficient businesses. This investment strategy allows Greycroft to differentiate itself and produce venture-type returns independent of the IPO market. Greycroft has an affinity for repeat entrepreneurs but is open to first-time founders as well.
“The key to our strategy has been a flexible approach. Many firms push for 20 per cent or greater ownership early, and that crowds out seed funds and co-investors. We have always thought of venture as a long-term, repeat business. As a result we have been focused on building syndicates that provide entrepreneurs the right tools to succeed,” says Ian Sigalow, co-founder at Greycroft.
“As a female co-founder, it has always been important for me that we invest in diverse teams; but, this is not a new thing for Greycroft – it is ingrained in our DNA. Nearly 50 per cent of our portfolio companies were founded by women or underrepresented groups,” Settle added.
High profile, female-founded companies currently in Greycroft’s portfolio include: BaubleBar, BitPesa, Clique, Cuyana, Eloquii, HopSkipDrive, theRealReal, Thrive Global, and theSkimm, among others.
Greycroft’s most recent addition to its portfolio include: Bird, the largest e-scooter sharing company; Red Balloon Security, a world leader in embedded device security; Wondery, creators of the podcast Dirty John; and, YieldStreet, the alternative investment platform striving to change the way wealth is created.
