Revolution announced Monday it closed its second Rise of the Rest Seed Fund, raising another $150 million that will back startups in emerging markets throughout the U.S.
The fund’s goal is to invest in companies outside of Silicon Valley, Boston and New York, where less venture capital is available.
Revolution’s first Rise of the Rest Seed Fund, launched in late 2017 and has backed nearly 130 companies in nearly 70 cities across 32 states. The remaining money from the first fund will be reserved for follow-on investments in those companies. Investments in new companies will be made from the second Rise of the Rest Seed Fund announced this week.
Revolution said that the remaining balance from the first fund will be reserved for follow-on investments. All Investments in new companies will come from the new fund.
Revolution’s Rise of the Rest movement got its start nearly five years ago when the firm began traveling around the country and hosting pitch competitions that awarded prizes of up to $100,000. Led by former AOL CEO Steve Case, the movement quickly gained local and national publicity.
Case last visited Des Moines in September 2018 to make the case for investing in startups in places like Des Moines and other cities in the middle of the country.
Earlier this year, Rise of the Rest completed its eighth bus tour, visiting Orlando, the Florida Space Coast, Tampa Bay, Miami and Puerto Rico. The Revolution team has now visited 43 cities and will announce the stops on its ninth tour early next year.
Steve Case makes the case for investing outside of Silicon Valley -Sept. 20, 2018
Rise of the Rest: How Des Moines can bring it back -Sept. 25, 2017