Jeff Ransdell is on a mission to find new startups to invest in.
Ransdell is the managing director and founding partner of Fuel Venture Capital, a Miami firm that backs disruptive technology ventures. The firm recently launched its latest fund, the Flagship Fund II, and is in the process of raising $300 million to support up-and-coming startups using tech to transform the way people work, shop, play and transact business.
Seven of Fuel Venture Capital's portfolio companies are anchoring the new fund, including Miami-based NovoPayment, virtual reality studio Aexlab and Betr, the sports betting app co-founded by serial entrepreneur Joey Levy and YouTube star Jake Paul. The firm plans to invest in 25 additional startups through the fund and is already in the process of vetting businesses for that purpose, Ransdell told the Business Journal.
After a pandemic-era boom, venture capital funding began to slow last year — and that continues to be the case in 2023. In the first quarter the number of startups landing venture capital declined in nearly all of the country's top and emerging tech hubs, including South Florida. The slowdown comes amid a broader tech industry downturn that's resulted in massive layoffs across the sector and the failure of Silicon Valley Bank.
But investors can benefit from the challenging funding environment, Ransdell told the Business Journal. That's why now is the time for Fuel Venture Capital to launch its latest fund.
"Private capital was abundant in the past few years and that put founders in positions of power," Ransdell said.
That's not the case anymore. Now, as founders compete for limited capital, check writers have more of an ability to control the terms of a deal.
"Individuals like myself have opportunities to make deals that are advantageous for investors," he added.
Fuel's portfolio includes 34 companies in the fintech, enterprise SaaS, consumer good, sports betting, entertainment and space industries. While it invests in startups located across the world, the firm reports it has directed more than $100 million to ventures headquartered in South Florida. One of those companies is Boca Raton's Terran Orbital, a small satellite manufacturer with a more than $1 billion valuation that went public in 2021.
Ransdell, who founded Fuel in Miami in 2017, said directing capital to entrepreneurs building businesses in the region will continue to be a priority for the firm. Although the region was a magnet for founders during the pandemic, he's concerned there are not enough local people backing companies built in South Florida. Most of Fuel's own investors are located outside of the state, he said.
He hopes more local investors will direct their attention to homegrown startups to support Miami's rising tech ecosystem.
"If the community doesn't get involved I have big concerns," he said. "We have founders here, but they need fuel to build. If they don't get it here, eventually they'll leave because they'll have to."
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