Early Postmates Inc.-backer Uncork Capital has raised two new funds totaling $400 million, doubling the size of its last funds.
(Bloomberg) — Early Postmates Inc.-backer Uncork Capital has raised two new funds totaling $400 million, doubling the size of its last funds.
One of the $200 million funds will be for seed-stage investing and the other will be for making follow-on investments in those companies as they grow, Managing Partner Andy McLoughlin said in an interview.
While some of the growth stage venture firms are facing a challenging capital raise environment, the best early stage investors are less affected by the current tech market correction.
“It’s a tale of two cities,” when it comes to venture investing right now, McLoughlin said. Prices at the earliest stages have gotten a little lower, but “it feels like a reset to the norm versus a massive crash,” he said.
Seed investment firm Pear Ventures also recently doubled in size.
Uncork was an early investor in Poshmark Inc., which went public, as well as in Human Interest Inc. and LaunchDarkly, two companies that have grown their valuations substantially. For its new funds, Uncork will be investing across a range of sectors including enterprise software, developer tools and consumer marketplaces. The firm invests globally, but in companies targeting U.S. customers.
McLoughlin said he isn’t as focused on artificial intelligence as some other venture firms are.
“We’re trying not to chase what’s hot today, in favor of what’s fundamentally excellent,” he said.
He said Uncork is looking for companies with “some kind of unfair advantage,” whether the founders had relevant prior work experience, academic experience, or anything else that could give the business an edge.
McLoughlin predicts that the venture industry will see an uptick in acquisitions, but not always at dream sale prices.
“A lot of companies are going to have to find homes,” he said, and eventually “private equity is going to have a field day” buying companies that need capital to grow to the next level.
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