Acceleprise Rebrands & Secures $30M Funding

Acceleprise Rebrands as Forum Ventures, Launches New Funds

TechCrunch has previously reported on Acceleprise, including coverage of its accelerator startup cohorts from its three programs in mid-2020. The company has consistently concentrated on business-to-business SaaS startups, assisting them in establishing themselves within a highly competitive global software landscape.

New Identity and Expanded Resources

Effective immediately, Acceleprise is operating under the name Forum Ventures, as announced by CEO and managing partner Michael Cardamone. This transition is accompanied by substantial funding to support the firm’s broadened objectives. Reflecting its new designation, the company has evolved beyond simply being a group of software-centric accelerators.

Significant New Funding Rounds

Forum Ventures has secured a new $17 million fund dedicated to pre-seed investments. Additionally, the firm has raised its inaugural seed fund, totaling $13.2 billion. Cardamone indicated to TechCrunch that investment amounts will range from $100,000 to $650,000 in funding rounds valued between $1 million and $4 million. This represents a fully-fledged seed fund.

Growth and Expansion of Investment Strategy

The establishment of a seed fund, investing in both accelerator graduates and external SaaS companies, is noteworthy. However, the new pre-seed fund is considerably larger than its predecessor. This increase in size is attributed to the addition of a third accelerator program since the last fund was established.

The escalating costs within the technology sector, coupled with Forum’s expanded team, also necessitate a larger capital base.

Synergy and Community Focus

A clear synergy exists between the pre-seed and seed funds, enabling Forum to safeguard early equity in promising companies emerging from its accelerator programs. The decision to invest in startups not incubated by Forum stems from the company’s new identity. Cardamone explained that the name "Forum Ventures" reflects their efforts in cultivating a SaaS community that occasionally generates companies outside of their formal programs, and they aim to support these ventures.

Strong Historical Performance

Forum’s new fundraising efforts are underpinned by the success of its earlier funds. The firm’s first accelerator fund, deployed between late 2014 and 2016, has yielded “86% of committed capital to date, with the remaining portion marked at 3.36X and continuing to grow, supported by 18 active companies,” according to a company statement.

Funds 2 and 3 are still relatively new, and their performance data is currently limited.

Impact of COVID-19

TechCrunch inquired about the impact of the COVID-19 pandemic on Forum and its funds. Did the firm benefit from a pandemic-driven surge in investment activity? It was considered whether recent positive results contributed to securing larger funds, and raising two simultaneously.

Cardamone confirmed a partial correlation. He stated that recent pre-seed cohorts are experiencing faster seed and Series A funding rounds. Furthermore, as TechCrunch has observed, some companies are securing Series A funding at lower Annual Recurring Revenue (ARR) levels than previously typical. Therefore, it is a favorable time to deploy pre-seed capital, provided there is a consistent deal flow.

Diversity and Inclusion

Forum currently employs 11 individuals, including six women and one nonbinary person. This level of gender diversity is notable within the SaaS venture capital landscape. 53% of investments from the new seed fund have included a woman or an underrepresented founder.

Looking Ahead

The challenge now for Forum Ventures is to replicate the strong returns achieved with its initial accelerator fund, leveraging increased capital, a broader range of financial instruments, and a larger team.

SaaS: Software as a Service
Pre-seed: The earliest stage of funding for a startup
Seed: The first official round of funding for a startup
ARR: Annual Recurring Revenue