Homebrew Ventures: New Fund Targeting $50M

Homebrew, a venture capital firm, is in the process of targeting $50 million for a new fund, as revealed by a recent filing with the U.S. Securities and Exchange Commission.

Fundraising Surprise

This move may come as a surprise to some, considering that Homebrew had announced nearly two years ago its intention to pursue a more stage-agnostic evergreen model. This model was supposed to be solely funded by Satya Patel and Hunter Walk, Homebrew’s general partners. However, it’s not uncommon for firms to raise multiple funds concurrently to capitalize on specific opportunities. For instance, some early-stage firms raise supplementary opportunity-focused funds alongside their main vehicle.

Seeking Clarification

TechCrunch reached out to Hunter Walk for comment on the new filing, but he mentioned that he couldn’t provide any public statements at this time. However, an anonymous source informed TechCrunch that Homebrew had been using Special Purpose Vehicles (SPVs) to invest pro-rata in certain follow-on opportunities. Now, the firm is aiming to establish a dedicated fund for this purpose.

Homebrew’s Track Record

Based in San Francisco, Homebrew has traditionally focused on seed-stage investments. Since its inception in 2013, the firm has made approximately 200 investments, according to Crunchbase data. Some of its notable portfolio companies include Winnie, Finix, Concentric AI, Mercury, and Plaid. Homebrew has also celebrated the exits of around three dozen portfolio companies, including Cruise, Weave, and Cheddar.

Recent Investment

In its most recent notable investment, Homebrew led the $12 million Series A round into Slang.ai. Slang.ai is a platform designed to automatically handle phone calls for restaurants, retailers, and other brick-and-mortar businesses.

Fund Structure

In March 2022, Homebrew had announced its transition to an open-ended fund structure with no termination date. This strategic shift aimed to provide greater flexibility and continuity in the firm’s investment approach.