Inspired Capital Closes $281M Second Fund

Inspired Capital Closes Second Fund with $281 Million

Inspired Capital, a venture firm established in 2019 by Alexa von Tobel and Penny Pritzker, has announced the final closing of its second fund. The fund secured $281 million in capital commitments, increasing the firm’s total assets under management to approximately $500 million. The firm previously raised $200 million for its initial fund.

Portfolio and Investment Strategy

Earlier this week, discussions were held with von Tobel regarding the firm’s portfolio of 25 companies, which were supported by its first fund. The conversation also centered on Inspired’s new fund, which, mirroring its predecessor, will focus on investments across a diverse range of companies, primarily within the U.S., though not exclusively.

Key excerpts from the discussion, edited for brevity and clarity, are presented below.

Q&A with Alexa von Tobel

TC: With the increase in fund size, will the investment approach be altered?

AV: Our team, strategy, and core principles remain consistent. We will continue to write seed to Series A checks, ranging from early-stage concepts to investments of up to $15 million. We maintain a collaborative approach, both leading and co-leading deals. As a generalist fund, we invest nationwide, with our first fund demonstrating equal investment across the East and West Coasts in a variety of sectors.

[Note: Portfolio companies include Rho, a business banking startup; Habi, a real estate firm based in Latin America; Finix, a provider of embedded payments solutions; and Scythe, an autonomous landscaping company utilizing electric mowers and a robots-as-a-service model.]

Navigating the COVID-19 Pandemic

TC: Your first fund was launched just before the onset of the COVID-19 pandemic. How did this impact your operations?

AV: We established fund one in February 2019, and I welcomed my third child before the fund officially closed that summer. Consequently, we entered the pandemic with a new fund and fresh capital. The companies we had backed were relatively new, possessing approximately 24 months of runway.

Furthermore, our team benefits from extensive professional relationships, totaling over 55 years of combined experience. Lucy and I have collaborated for two decades, Mark and I for eleven years, and Penny and I for nearly ten. Our VP of platform has been with me for twelve years, and even our PR firm has a relationship with me spanning almost twelve years. This allowed us to respond with agility to the evolving global situation.

Fintech Focus and International Investments

TC: Given your background in founding and selling a financial planning company, LearnVest, does Inspired focus primarily on fintech, or are you also investing internationally despite the thriving fintech landscape elsewhere?

AV: We allocated 40% of our first fund to the East Coast, 40% to the West Coast, and 20% to the central U.S., alongside international investments. For instance, Habi, a portfolio company based in Bogota, Colombia, is experiencing significant growth and recently secured $100 million in funding led by SoftBank. I have known the co-founder, Brynne McNulty Rojas, for many years, and we had a strong conviction in the category, prompting me to offer our support.

Key Investments to Date

TC: Which companies have received the largest investments from Inspired Capital thus far?

AV: Habi represents a significant investment. Additionally, we assisted in the incubation of Orum, which is focused on accelerating interbank transfers and recently closed a $56 million Series B funding round in June. This venture originated with my former team from LearnVest.