RevRoad, a venture services firm founded in 2017, paved a unique path for Utah-based startups, providing them with two-year program with a wealth of resources. Among these resources were legal consultancy, sales guidance, and valuable mentorship, all in exchange for equity.
Now, the organization has expanded its offerings by establishing RevRoad Capital, an investment fund catered towards early-stage startups.
- RevRoad Capital: Raised a substantial $61M for its inaugural fund, primarily focusing on seed-stage investments. Although it is a separate entity, it will predominantly invest in companies that graduated from RevRoad’s program while also exploring other promising startups.
- Leadership: David Mann, who has been with RevRoad since 2018, now serves as the executive managing director of RevRoad Capital.
- Market Conditions: Despite unfavorable market conditions, particularly for emerging managers, RevRoad Capital managed to successfully launch its fund. Rachelle Morris, the managing director, acknowledged the challenges but also highlighted their success in tapping into an underrepresented group of Limited Partners – women operators in Utah.
- Investment Strategy: The firm’s strategy is to invest in startups with existing relationships with RevRoad, providing them with an inherent advantage of two years worth of data and due diligence before an investment. This strategy provides a sense of security for LP’s considering the perceived reduced risk.
- Geographical Focus: While most portfolio companies for Fund I will be Utah-based, RevRoad Capital plans to expand geographically as RevRoad itself grows.
- Industry Focus: RevRoad Capital has a wide industry focus, including electric vehicles, AI, SaaS, retail, and manufacturing.
By linking RevRoad and RevRoad Capital, the fund ensures that portfolio companies continue to benefit from RevRoad’s startup services. This approach represents a unique offering in the startup ecosystem, providing both capital and supportive resources to companies on their journey toward growth.
