Madrona just announced its biggest fund ever, closing on $770M as other venture funds grow smaller

Seattle-based Madrona Capital is marking its 30th anniversary by raising $770 million, its largest fundraise to date, surpassing the $690 million raised in 2022. This increase is notable in a challenging market where many venture firms are reducing their fund sizes. Madrona's managing director, Matt McIlwain, attributes this success to the firm's ability to distribute capital to investors through recent exits, including the sales of Lexion to Docusign for $165 million and Octo AI to Nvidia for $250 million. Madrona, which began as a group of "super angels" investing in Amazon in 1995, has evolved into a multi-stage investor supporting companies like Redfin, Smartsheet, and Snowflake, and more recently, AI startups like Typeface and Runway.

The new capital will be allocated to investing in AI applications across various sectors and infrastructure companies that enhance user interaction with foundational models. Madrona plans to invest in about 30 early-stage startups and 12 companies at the Series B or C stages. The firm, which expanded beyond Seattle by opening a Silicon Valley office in 2022, is optimistic about future opportunities, particularly in 2025, and is adopting a "risk-on mindset" to foster entrepreneurship and create value.

Key takeaways

Madrona Capital raised $770 million in fresh capital, marking its largest fundraise to date.
The firm has had successful exits, including Lexion and Octo AI, which contributed to investor confidence.
Madrona plans to invest in AI applications and infrastructure companies, focusing on early-stage and Series B/C startups.
The firm expanded beyond Seattle by opening a Silicon Valley office in 2022.

Madrona just announced its biggest fund ever, closing on $770M as other venture funds grow smaller | TechCrunch

Key takeaways

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