This may not seem like a big deal to some of you. Silicon Valley has many billion dollar venture funds, after all. But for startups in Utah, this is huge news.
A $23 million fund focused on seed investments of $100k to $1 million can provided a needed boost to dozens of companies. If even a single startup funded by Peak Ventures follows the path of billion-dollar Utah companies such as Omniture, Vivint, Ancestry, InsideSales, or Qualtrics, the ripple effects will boost the economy and entrepreneurship for years to come.
Most large venture funds focus on later stage investments–not in the seed round. In fact, only 1.5% of the $13 billion in US venture funding last quarter was reported to be seed stage funding.
From the Q2 2014 MoneyTree Report:
“Seed stage investments rose 46 percent in dollars and 20 percent in deals with $189 million invested into 55 deals in the second quarter.”
In that context, a new $23 million fund in one of the hottest startup areas of the country is a really big deal.
One of the best venture funds in the country is First Round Capital with offices in Pennsylvania and San Francisco. They too focus on being the first money into new companies. They are now on their 5th fund and have invested in hundreds of companies, including some well-known companies like Mint, Warby Parker, and Uber, as well as one of my new favorites, Lob.
Huge congrats to Jeff Burningham, Sid Krommenhoek, and the other Peak Capital partners for getting this fund organized and announced yesterday!