First close of $22 million, with an additional $23 million in commitments
The lack of venture capital in the Midwest means there are opportunities. A survey of Crunchbase data from 2008-2018 shows a higher multiple for Midwest companies: 93 companies from the Midwest raised a median $15.5 million and had a median exit of $177 million. In the West, 713 companies raised a median $38.5 million and had a median exit of $163 million, according to Lightship’s deck.
Lightship engages executives-in-residence from big brands to work with entrepreneurs, relationships that facilitate acquisitions. It aims for a 10% ownership stake and to provide bridge financing to a Series A round.
Husband and wife Candice Matthews Brackeen, founder of Cincinnati-based Hello Parent, and Brian Brackeen, founder of Miami-based face recognition company Kairos. Accelerator company SecondMuse is a general partner.
Minimum Investment Size:
“If everybody flies over the Midwest and no one is investing, these companies are hungry,” Matthews Brackeen told The Wall Street Journal. “By the time I get to them they’ve learned it all and have figured out product-market-fit and then my cash is really for growth and not for learning.”
This story and others on New Builders Dispatch are made possible by a sponsorship from the Ewing Marion Kauffman Foundation. The Ewing Marion Kauffman Foundation is a private, nonpartisan foundation that provides access to opportunities that help people achieve financial stability, upward mobility, and economic prosperity – regardless of race, gender, or geography. The Kansas City, Mo.-based foundation uses its grantmaking, research, programs, and initiatives to support the start and growth of new businesses, a more prepared workforce, and stronger communities. For more information, visit www.kauffman.org and connect with www.twitter.com/kauffmanfdn and www.facebook.com/kauffmanfdn.