TLDR:
Alpha Partners raises $153M for third fund focused on pro-rata investments. The fund is nearly three times larger than its previous fund and invests primarily in companies that have more than $10 million in revenue, are close to profitability, and led by top-tier VCs.
Key Points:
- Alpha Partners raises $153M for third fund for pro-rata investments.
- Invests primarily in companies with more than $10 million in revenue, close to profitability, and led by top-tier VCs.
Steve Brotman founded Alpha Partners in 2014 with the unique concept of investing alongside early-stage VCs to help maintain ownership in promising companies as they move into later funding rounds. The firm’s latest fund is significantly larger than its previous fund, signaling continued interest in the pro-rata investment strategy.
Alpha Partners typically makes investments of $5 million to $10 million alongside seed investors in companies raising Series B rounds or later. The firm focuses on companies with strong growth potential, profitability, and leadership in their respective categories. Recent investments include AI platform Pearl, defense tech startup Shield AI, and radiologist report generator Rad AI.
By partnering with top-tier VCs and focusing on pro-rata rights, Alpha Partners has seen successful exits, including IPOs of companies like Coursera, Rover, and Udemy. The firm’s strategy of investing in promising companies alongside seed-stage VCs has proven to be successful, with notable returns on investments in companies like Coupang.
Despite changes in the VC landscape and the decline in popularity of opportunity funds and SPVs, Alpha Partners remains committed to its strategy of pro-rata investments. The firm’s focus on providing its LPs access to the top 1% of deals has set it apart in the industry and continues to drive its success.
