Kearny Jackson Raises $65M for Third Fund

Kearny Jackson Raises $65 Million for Third Fund

Kearny Jackson, a venture capital firm, has successfully secured $65 million for its third funding round, marking a significant increase from the $14 million raised for its second fund in 2023. The new capital infusion includes contributions from first-time institutional funds and prominent limited partners such as Sequoia and Marc Andreessen. Co-founded by Sriram Krishnan and Sunil Chhaya, the firm specializes in B2B SaaS, fintech infrastructure, and is actively involved in leading or co-leading investment rounds. With a diverse mix of limited partners, including endowments, pension funds, and individual investors, Kearny Jackson plans to leverage the larger fund to drive increased ownership in portfolio companies, targeting stakes of 6% to 10%.

The firm's strategic approach prioritizes "time to value," with a focus on supporting pre-revenue and pre-product startup teams. Additionally, with plans to invest in 30 to 35 companies over the next three and a half years, Kearny Jackson aims to strengthen its position as a lead VC and further enhance its collaboration with both large and small VCs.

Key Takeaways

• Kearny Jackson raises $65 million for its third fund, targeting early-stage B2B SaaS and fintech startups.
• The VC firm emphasizes "time to value" for founders, aiming to work as quickly as startup teams.
• Kearny Jackson's LP mix includes Sequoia, Bain Capital Ventures, and Menlo Ventures, among others.
• The fund aims for 6% to 10% ownership in portfolio companies, investing around $1.5 million per startup.
• Kearny Jackson plans to invest in 30-35 companies over the next three and a half years, focusing on pre-seed and seed stages.

Analysis

Kearny Jackson's expansion to a $65 million fund, supported by notable LPs such as Sequoia, signifies strong market confidence in early-stage B2B SaaS and fintech. This move may intensify competition for top startups, but the firm's lower ownership stake strategy could attract founders seeking expedited support over higher equity. This dynamic could potentially reshape VC engagement norms, fostering rapid startup maturation and broader VC ecosystem collaborations.

Did You Know?

• "Time to Value":
  • Insight: The strategic approach of prioritizing "time to value" ensures quick assistance and value addition to startups, particularly crucial for pre-revenue and pre-product stages.
• Stealth Investment:
  • Insight: A "stealth investment" enables discreet support for startups without public disclosure, indicating strategic support for potential high-impact ventures.
• Pre-Seed and Seed Stages:
  • Insight: Kearny Jackson's focus on these early stages manifests its commitment to supporting startups during critical periods of their development.