Venture capital investor Rally Ventures announced Wednesday it closed on $250 million for its fourth fund, called Rally IV. The fund was oversubscribed, Rally said.
Rally is a Minneapolis- and Menlo Park, Calif.-based investor in seed- and Series A-stage tech companies. Some of its notable local portfolio companies include St. Louis Park-based financial tech company Total Expert Inc., Minneapolis-based sports software SportsEngine and Minneapolis-based food delivery startup Foodsby Inc. Parallax
RELATED: Read Rally's Form D here.
With the new fund, Rally now has almost $600 million in committed capital, it said in a press release. It raised its last fund of $150 million in 2018 and has invested in over 50 companies across the United States.
"We're proud to have the continued support of our existing limited partners and thrilled to be adding new investors with a long-term commitment to venture capital, including a high-caliber group of endowments, foundations, family offices and corporate investors," said co-founder and partner Jeff Hinck in a statement.
Rally Ventures was founded in 2012 by Hinck, who is based out of Minnesota, and Charles Beeler, who is based out of Silicon Valley. It added a third partner, former SportsEngine CEO and co-founder Justin Kaufenberg, in 2019.
Rally started raising money for the fund in early summer, Kaufenberg said. Rally has about three more investments to make out of its third fund and will start investing out of fund four some time in early 2021. The new fund will be invested over the course of about three years and will go into between 20 and 22 companies, he said. A large portion of that money will be saved to make follow-on investments.
Last year, CB Insights said Rally was Minnesota's most active venture capital firm. It has invested almost $100 million in 13 Minnesota tech companies; those investments have helped create about $3 billion in aggregate value.
Part of Rally Ventures' "secret sauce" are its over 100 Rally Tech Partners, or founders and executives who serve as informal advisers, Kaufenberg said. Those tech partners, which include people like serial entrepreneur Phil Soran and Google CIO Ben Fried, are also investors in Rally; they have invested over $100 million since the company was founded.
New tech partners for Rally IV include Jamf co-founder Zach Halmstad and 3M Executive Vice President of International Operations Julie Bushman.
