Origin Ventures Closes Oversubscribed Fifth Fund at $130M

  • November 9, 2021
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Origin Ventures Closes Oversubscribed Fifth Fund at $130M

Today we announced the launch of our newest fund, Origin Ventures V, with a final closing of $130M. We will continue to invest in innovative, rapidly growing companies that are defining the Digital Native Economy – and backing the ambitious entrepreneurs that found them.

We initially set a target on the fundraise of $100M – then came Covid-19 and all of the uncertainty and limitations that accompanied it. Overcoming the adversity of the pandemic makes announcing the closing of the fund at $130M – 30% over our target – especially gratifying. Exceeding our fundraising goal by such a wide margin, during a period when in-person meetings were largely impossible, is a testament to the shared conviction of our limited partners in the Origin Ventures team, our strategy, and our investment thesis.

Throughout our history as a firm, we have had the privilege of investing in high-growth software, marketplace, and consumer businesses that have defined entire categories.  Thesis driven investments in companies like Grubhub (NYSE: GRUB), Cameo, Fountain, BacklotCars (acquired by NYSE: KAR), 15Five, and Tock (acquired by NYSE: SQSP) spanning 19 different metropolitan areas across the U.S. and Canada have enabled Origin Ventures to be consistently ranked among the best performing venture capital firms based on realized returns. 

Our Digital Native Economy thesis was a cornerstone of Origin Ventures IV and a key component of that fund’s tremendous success to date. With Origin Ventures V, we double down on it. Millennials and Gen Z are the first generations to have three things from a very young age – the Internet, social media, and a smartphone. The way digital natives live, work, and play has evolved. They now comprise more than 50% of the U.S. workforce, and command more purchasing power than previous generations. We continue to leverage these evolving behavioral differences to find high-growth B2B and consumer companies across several themes – such as the ‘workplace of the future’, the ‘creator economy’, and the ‘circular economy’ to name a few. 

Origin Ventures V has already completed several new investments along these themes – leading the Seed, Seed Plus, and Series A financings for high-growth companies, including: 

  • Blueboard – an experiential employee rewards and recognition provider
  • Vivrelle – a membership club for luxury goods
  • Veho – a ‘last mile’ delivery platform leveraging gig economy drivers
  • Lumanu – a payment platform for creators and brands
  • Everee – next day payments for hourly and gig workers

Our latest fund brings an expansion not only in our capital base, but also in our geographic presence. With Prashant Shukla’s relocation to the Bay Area, and Scott Stern’s move to the Washington DC area, we add to our existing presence in Chicago and Salt Lake City and become one of the first venture capital firms to have partners in all four continental U.S. time zones. 

Very similar to our portfolio companies, we found we had to adapt to a remote-first model over the past 18 months. But in doing so, we also recognized that this created an important opportunity. Our Salt Lake City presence, established several years ago, has helped us identify a diverse set of investment opportunities aligned with our thesis. By expanding our presence to all four U.S. time zones, we are now never more than 90 minutes away from an elite team building a disruptive business. We think this will prove to be a distinct advantage for our fund. 

Over the past decade, Origin Ventures has grown from $16M to over $300M in capital raised. 15 companies have reached valuations in excess of $100M. Two ‘unicorns’ valued at over $1B have been born. And there’s much more to come.

 

Here is the press release announcing the fund, along with select media coverage: 

TechCrunch – Chicago’s Origin Ventures Just Closed it’s Biggest Fund Yet with $130M in Commitments
Crain’s Chicago Business – VC firm Origin Ventures crosses the $100M barrier (pw)
Chicago Inno – Origin Ventures raised $130M for latest fund

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