In a bold move that marks a significant upswing in its investment trajectory, Cornerstone Ventures has officially unveiled Fund II, a substantial $200 million venture capital fund aimed at nurturing the growth of early to growth-stage startups. This new fund, inclusive of an additional $50 million green-shoe option, is set to become a cornerstone for innovative startups seeking financial and strategic growth support.
A Strategic Leap Forward
The launch of Fund II by Cornerstone Ventures represents a strategic expansion of the firm’s commitment to fostering innovation in the B2B enterprise technology space. With a planned investment in 15-20 startups, the fund is poised to catalyze the development of software platforms and marketplaces across various sectors, including financial services, insurance, retail, consumer goods, e-commerce, and more.
The fund’s flexible ticket sizes, ranging from $5 million to $15 million, underscore Cornerstone’s adaptable approach to investment, catering to the diverse needs of burgeoning enterprises. This flexibility is a testament to the firm’s understanding of the unique challenges faced by startups at different stages of their growth journey.
Building on a Foundation of Success
Cornerstone Ventures is no stranger to the venture capital landscape, having established a robust portfolio through its inaugural Fund I, launched in 2019. With an initial size of $50 million, Fund I was deployed across 21 portfolio companies, primarily focused on B2B enterprise software-as-a-service (SaaS) business models.
The success of Fund I, which saw over 4X growth in cumulative revenue across its portfolio in approximately four years, has laid a solid foundation for Fund II. The new fund aims to replicate and exceed this success by leveraging the firm’s experience and strategic insights to identify and invest in startups with high growth potential.
Envisioning a Future of Innovation and Growth
The future looks bright for Cornerstone Ventures and the startups it will support through Fund II. With a clear focus on innovations that streamline core business processes, engage multiple stakeholders, and build sustainable revenue streams, the fund is set to make a lasting impact on the B2B tech ecosystem.
As Cornerstone Ventures embarks on this new chapter, the firm remains committed to being an active participant in the growth journeys of its portfolio companies, facilitating additional annual recurring revenue and driving growth through strategic investments.
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