What's New In Investments, Funds? - Susa Ventures

Editorial Staff

31 August 2021

Susa Ventures
Susa Ventures, an early-stage venture capital firm, has closed $375 million in new capital from investors.

The latest tranche includes a $125 million seed-stage fund and a $250 million opportunity fund that will enable Susa Ventures to continue investing in industry-leading businesses such as Robinhood, Flexport, Mux, Newfront Insurance, Stord and Viz.ai, it said in a statement yesterday.

With the new funding, Susa Ventures IV will make $1-2 million investments at the seed stage and Susa Ventures Opportunities II will make $10-15 million investments at the Series B and C, primarily into existing portfolio companies. The venture capital firm will continue investing in a variety of industries, but will focus primarily on fintech, healthcare, supply chain and software-as-a-service.

"People always assume seed stage funds stop after the initial investment, but we're in it for the long run," Chad Byers, co-founder and general partner at Susa Ventures, said. "This two-fund structure allows Susa to back portfolio companies from Series Seed to IPO, as we did with Robinhood which recently went public."

The latest fund also allows Susa Ventures to continue offering its founders the unique opportunity of becoming limited partners in a parallel fund with no fees and no carry. This opportunity was first offered in 2019 as a part of Susa Ventures III and is being continued in Susa Ventures IV, with 91 partners from the Susa Ventures portfolio investing in this round.

Out of the firm's 41 initial investments from the first $25 million fund, five are valued at over $1 billion from seed, and seven have already had successful exits, valued at more than $323 million.