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Today: October 1, 2024
July 7, 2024
1 min read

Rackhouse VC Secures $45M Fund for Early-Stage AI Investments

TLDR:

  • Rackhouse Venture Capital closed a $45 million second fund to invest in early-stage AI companies
  • Focus on founders in GenAI, AI Services, and data-enabled marketplaces

Rackhouse Venture Capital recently closed its $45 million second fund, aimed at investing in early-stage AI companies. The fund will support founders who have achieved product-market fit in overlooked niches and have a strong customer focus. The firm is particularly interested in founders in GenAI, AI Services, and data-enabled marketplaces, who have talented technology teams and unique distribution strategies.

The closing of Fund II coincides with the opening of Rackhouse Ventures’ first office in San Francisco. The team consists of industry experts with operational experience in AI/ML, including Kevin Novak, Uber’s first Head of Data Science. Fund II’s investments are focused on San Francisco-based companies as well as those across the U.S., with potential investments outside the U.S. in progress. This demonstrates Rackhouse Ventures’ ability to identify and capitalize on global opportunities in the AI space.

Fund II builds on the success of Rackhouse Ventures’ first fund, which closed at $22.3 million and included 32 investments with a 69% graduation rate. Four founders from Fund I are participating as LPs in Fund II. Currently, Fund II has completed eight investments, including Onbrand, Insummary, and Crosshatch.io. With its strategic approach, industry expertise, and commitment to supporting visionary founders, Rackhouse Ventures aims to back the next generation of AI leaders.

In a statement, Kevin Novak expressed confidence in Fund II’s ability to generate strong returns for investors and create lasting impact in the AI industry. With the close of Fund II, Rackhouse Venture Capital plans to continue empowering early-stage startups to make a difference with data.

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