Revolution announced Monday that its Rise of the Rest Seed Fund has raised another $150 million in financing to back startups in emerging U.S. markets.
Rise of the Rest counts some of the country’s most well-known executives and entrepreneurs among its investors. The list includes Amazon CEO Jeff Bezos, Dan Gilbert of Quicken Loans, the Koch family and a handful of other billionaire philanthropists and investors.
Revolution’s David Hall will lead the new fund as managing partner. Partners Anna Mason and Mary Grove (stationed in Minneapolis) will also have expanded leadership roles on the team.
Revolution also secured $215 million last month for its third fund.
The first Rise of the Rest Seed Fund, started in 2017, has backed nearly 130 companies in nearly 70 cities across 32 states. Its average check size is around $500,000, according to Forbes. Revolution said that the remaining balance from the first fund will be reserved for follow-on investments. Investments in new companies will come from the new fund.
Revolution’s Rise of the Rest movement got its start about five years ago when the firm began traveling around the country and hosting pitch competitions that awarded prizes of up to $100,000. Led by former AOL CEO Steve Case and “Hilbilly Elegy” author J.D. Vance, the movement quickly gained local and national publicity.
Earlier this year, Rise of the Rest completed its eighth bus tour, visiting Orlando, the Florida Space Coast, Tampa Bay, Miami and Puerto Rico. The Revolution team has now visited 43 cities and logged more than 11,000 miles touring startup ecosystems. The firm will announce the stops on its ninth tour early next year.
Since 2014, when Revolution first brought its bus tour to Minneapolis, Rise of the Rest has backed at least four Minnesota companies. This includes B2B delivery startup Dispatch, HR tech startup structural, med-device company Pops! Diabetes Care and Minnesota Cup winner 75F.
The organization's seed fund also recently helped back a $15 million round for Austin startup ZenBusiness -- and, before that, it had made four prior investments in Austin companies.
“We are incredibly pleased to have so many of our investors reaffirm the Rise of the Rest Seed Fund strategy and again commit to the idea that great companies can – and do – start anywhere,” Case, Revolution’s chairman and CEO, said in a statement. “We believe that supporting their growth will yield success for our funds, and help level the playing field so that geography is no longer a barrier to the pursuit of the American Dream.”
Editor's note: Austin Inno's Brent Wistrom contributed to this report.
