SNAK Venture Partners Launches $50M Fund for Vertical Marketplaces
▼ Summary
– SNAK Venture Partners closed a $50 million debut fund, anchored by the Pritzker Group, which was oversubscribed.
– The firm, founded by Sonia Nagar and Adam Koopersmith, focuses on investing in B2B digital marketplaces, targeting undigitized industries.
– It has already invested in six companies and plans to make seed investments in at least 20, deploying the fund within 3-4 years.
– The founders leveraged their strong backgrounds and Pritzker Group’s support to raise the fund despite a challenging capital environment.
– SNAK is location-agnostic, based in Chicago, and sees value in finding overlooked founders outside major tech hubs.
A new $50 million venture fund is now actively seeking to transform traditional business sectors through digital marketplaces. SNAK Venture Partners has officially closed its oversubscribed debut fund, backed by the Pritzker Group among other investors. Founded by Sonia Nagar and Adam Koopersmith, the firm will concentrate its investments on B2B vertical marketplaces in industries that remain largely undigitized, such as supply chain, construction, and industrial equipment.
The founding partners bring considerable experience from their prior roles. Nagar helped launch Amazon’s apparel division and led mobile at RetailMeNot, while Koopersmith spent two decades at Pritzker Group, serving on the boards of several marketplace companies. They believe the current moment is ripe for disruption. Advancements in fintech infrastructure have made even historically cautious industries more receptive to adopting new technological solutions.
Nagar points to the monumental success of consumer platforms like Uber and Airbnb over the past decade, noting that most massive venture outcomes originated in the consumer space. She argues this creates a significant opportunity. “We think there’s a ton of white space to double down and focus on B2B marketplaces,” Nagar stated, targeting categories that have yet to undergo a full digital transformation.
The fund has already begun deploying capital, with six portfolio companies including BigRentals for equipment rental and Repackify for packaging logistics. The overall strategy involves making seed investments of $1 million to $2 million into at least 20 companies, with plans to deploy the entire fund within three to four years.
Raising a new fund in the current economic climate presents challenges, with capital often concentrated among established firms. Nagar credits their successful raise to their track records and the anchor support from Pritzker Group. Additional limited partners include the State of Illinois Growth and Innovation Fund and executives from companies like Favor Delivery and RetailMeNot.
Geographically, SNAK adopts a flexible approach. While the firm is headquartered in Chicago, a location some initially viewed as a disadvantage, the partners see it as a strategic benefit. “We’re finding these overlooked founders in places where maybe other funds aren’t looking,” Nagar explained. This location-agnostic philosophy allows them to identify and reach promising startups across the country quickly, unconstrained by the traditional venture hubs of Silicon Valley and New York.
(Source: TechCrunch)
