A flagship D.C. investment group is ready to spend.
Revolution, a District-based venture capital firm led by AOL co-founder Steve Case, announced the close of its third Revolution Ventures fund with $215 million in the bank.
The fund, one of three Revolution divisions, invests in early-stage companies attacking multibillion-dollar categories. It focuses on startups outside of New York, Silicon Valley and other major U.S. tech hubs.
“Revolution is focused on backing entrepreneurs in places that are overlooked by most venture capitalists," Case said in a statement. "This investment philosophy has resulted in outsized returns — and this new fund is poised to benefit from the unique and growing deal flow from Revolution’s national brand and network.”
Investments from the previous Revolution Ventures fund include D.C.-based Framebridge and Homesnap, along with Milwaukee's Bright Cellars, Detroit's Bloomscape and Chicago's Paro. Five of 18 companies backed by that fund have found full or partial exits.
By focusing on markets outside the coastal tech corridors, Revolution finds entrepreneurs and high-growth startups in a less competitive investing environment.
“We take a decidedly different approach from most early-stage investors who depend on a select few companies in their portfolios to achieve massive returns and offset strikeouts," Managing Partner Tige Savage said in a statement.
The $215 million fund comes in just higher than the first two Revolution Ventures funds, which came in at $200 million apiece. It's one of three branches at the 14-year-old investment shop, whose other funds include Revolution Growth and the Rise of the Rest Seed Fund.
As a whole, Revolution's successful investments and exits include OrderUp – which sold to Groupon – and Zipcar’s acquisition by Avis. Current local investments include Cava, WireWheel, FiscalNote, Upskill and Optoro.
For more on Revolution's "rise of the rest" investment philosophy, listen to this TechCrunch podcast featuring Revolution Ventures Partner Clara Sieg.
