Alpha Venture Partners, a pioneer in providing late-stage capital for early-stage venture firms, today announced details of its investment strategy aimed at providing capital to early-stage VCs with expiring pro rata rights. The firm is targeting a $100 million fund, Alpha Venture Partners Fund II, to add to its $75 million in assets under management.
“There is an untapped market for helping early-stage VCs who lack the capital to participate in their portfolio companies’ later-stage rounds,” said Steve Brotman, founder and managing partner of Alpha. “We offer early-stage funds a solution to maintain their pro rata rights. An Alpha partnership enables them to double down in their winners.”
To date, the firm has $50 million deployed across eight high-growth companies including Coupang, Vroom, Wish, and LiveIntent. The Alpha Fund I portfolio companies are growing at a combined 70 percent compound annual growth rate, and generating over $6 billion in gross revenue. Fund II will allow Alpha to continue to expand its network of early-stage funds and limited partners.
“Our co-investment strategy levels the playing field for our network of hundreds of early-stage funds to invest in their later-stage opportunities,” Brotman added. “We are one of the only ready sources of capital on a deal-by-deal basis for late-stage opportunities. Alpha is pioneering a new asset class that is ripe for innovation.”
“As the world’s third largest seed investor, SOSV makes over 200 investments per year in the companies that come through our world-leading accelerators,” commented Sean O’Sullivan, SOSV founder and managing partner. “As these startups begin to scale to tens of millions in revenue, we tap into leading global investors like Alpha Venture Partners to help fund these companies and syndicate some of our hottest deals. It’s a pleasure to work with the pros at Alpha. They are thorough, responsive, and direct — qualities that are all too rare.”
“Alpha is pursuing an interesting opportunity in an inefficient market,” said JH Moulton, managing director of Waypoint Holdings. “Family offices that invest direct into companies need to find a sourcing edge. While we normally do not invest in funds, and have our own direct private equity investment team, Alpha’s co-investment fund model is attractive.”
About Alpha Venture Partners
Alpha Venture Partners is the leading pro rata preemptive rights co-investment firm. Alpha provides early-stage venture capital firms with capital to continue to invest in their IPO track portfolio companies and maintain their pro rata rights. Based in New York City, Alpha Venture Partners currently has more than $75 million in assets under management. For more, visit alphavp.com.
