San Francisco-based venture firm Growth Street Partners has announced the close of its $70 million inaugural fund. Fundraising officially began in early January of 2017 and was quickly oversubscribed, according to the press release. Commitments came from 36 LPs.
Growth Street, founded by former Mainsail Partners executives Stephen Wolfe and Nathan Grossman, provides early growth capital to vertically-focused, high growth SaaS and tech-enabled services companies located in underserved U.S. markets. Investors include leading institutions, family offices, professional investors, CEOS, entrepreneurs and founders – many of which have ties to several of Growth Street’s target markets such as Baltimore, Cincinnati, Denver, Houston, Kansas City, Memphis, Omaha, Philadelphia, Portland and San Diego.
The new fund will invest $3 million to $10 million behind founders who lead $1 million to $5 million annual run-rate revenue companies.
Growth Street has also rolled out an initiative to build out its database and proprietary software to better target and cultivate relationships with the top entrepreneurial talent. The firm hopes to put in contact entrepreneurs who previously dealt with problems that Growth Street’s portfolio companies are currently solving.
"We think putting together entrepreneurs from industry with a combination of capital and help is a recipe for long-term success," said Grossman. "Growth Street provides both strategic guidance and execution capacity.”
Growth Street recently closed its first investment in Iowa City-based Pear Deck, a leading provider of real-time K-12 classroom engagement SaaS.