Revolution announced Monday that its Rise of the Rest Seed Fund has raised another $150 million to back startups in emerging U.S. markets.
Revolution said Monday that it has raised a second $150 million VC fund just two years after launching its first Rise of the Rest Fund, which also totaled $150 million. 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. The fund also has several Chicago-based investors, including Groupon co-founders Brad Keywell and Eric Lefkofsky, Morningstar founder Joe Mansueto, and Craig Duchossois, the CEO of the Duchossois Group.
Revolution’s David Hall will lead the new fund as managing partner. Partners Anna Mason and Mary Grove will also have expanded leadership roles on the team.
The first Rise of the Rest Seed Fund, started in 2017, has backed nearly 130 companies in almost 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 backed five Chicago startups from its first Rise of the Rest fund: Codeverse, Foxtrot, PartySlate, Peanut Butter and The Minte.
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.
Revolution, which operates three separate funds, secured $215 million last month for its latest Revolution Ventures fund.
“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.”
