A new-to-the-scene Northern Kentucky venture capital company is looking to raise a nine-figure fund as part of its push to catapult e-commerce growth in the region
EGateway Capital, a Covington-based investment and advisory firm, is planning to raise a $100 million fund, according to a filing with the U.S. Securities and Exchange Commission. The fund would be the firm’s second since its launch in early 2021. EGateway invested $20 million in three startups over the last year.
Officials at the firm did not respond to a request for comment. That’s typical since federal regulations restrict publicity when companies are actively raising funds.
Per the filing, EGateway plans to offer a pooled investment fund, which aggregates money from multiple investors.
EGateway’s singular focus is the e-commerce value chain, or how goods are marketed, sold, transacted and delivered. The firm wants to invest in the technologies, platforms and marketplaces around it.
Managing director Chad Summe left his position as chief strategy officer at Quotient Technologies to start EGateway with partner Mike Veith, a financial adviser and former co-founder and business development officer at Constellation Wealth.
One side of the business handles growth equity investments, targeting post-seed or early-stage companies. The other side serves as an M&A advisory, led by Mark Sancrant, founder of Blue Ash Capital, who also served stints at Prudential Securities, iNET and Over-the-Rhine agency Empower.
The firm quietly amassed a long list of founding shareholders, including several top executives and investors, including John Brase, COO of J.M. Smucker Co.; Bobby Fisher, chairman of Quiet Star Capital, an investment company, and former CEO of Loveland-based Washing Systems; and Dr. Robert Heidt Jr., retired CEO of Wellington Orthopaedic and Sports Medicine, among others.
In an interview with Cincy Inno in September, Summe declined to comment on a timeline for fund II, but told me the plan was to actively scale the portfolio.
The firm wants to raise the region's status as an e-commerce capital. Greater Cincinnati has many geographical advantages, he said, and has already attracted the likes of Wayfair, DHL and Amazon — which recently opened a $1.5 billion air cargo hub.
“It’s a dire need,” Summe said. “We’ve made a lot of strides as a region, and we hope to play a small role in that momentum as we go forward. We really believe there’s an opportunity (as an investment firm) in this space to do things differently.”
EGateway used its inaugural $20 million fund to add three portfolio companies last year, including local startup darling 80 Acres Farms, which closed a $160 million round in August, as well as Los Angeles-based Flowspace, which is building tech for e-commerce and retail fulfillment centers that allows for two-day shipping, and Cargomatic, considered the Uber of short-haul trucking.
The firm is among several local venture groups to raise or close new funds over the last several months, including Refinery ($37 million), Allos Ventures ($75 million) and H Venture Partners ($20 million).
