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Venture capital firm refuels with new $65 million fund

August 31, 2016

Hyde Park Venture Partners announced Tuesday that it has finished raising money for a new $65 million fund, effectively restocking the war chest that it uses to deploy venture capital in technology firms across the Midwest.

This is the second fund for the Chicago-based firm, which was founded in 2011 and established an outpost in Indianapolis in early 2015.

Hyde Park raised $25 million for its first fund. IBJ reported in January that it was raising $60 million for Fund II, but officials couldn't comment at the time.

"We're super excited about it," Tim Kopp, who leads the local office, said Tuesday about closing the second fund. "It gives us combined assets of nearly $100 million now."

Venture firms "close" a fund when they receive a set amount of commitments from individual and institutional investors. They request, or call, that money when they find companies to invest in.

Kopp said Hyde Park began investing Fund II money before the fund closed, and some of the local recipients include DemandJump, Bolstra LLC and Clear Software.

The firm had 32 investments in Fund I. It has 26 so far in Fund II, and plans to invest in about 75 companies with the latest fund over the next few years.

In addition to raising money, Hyde Park has also added some advisers who provide perspective and ideas, and can participate in discussions with portfolio companies as needed.

Among them: Mike Fitzgerald, a partner at venture studio High Alpha; Todd Richardson, chief people officer at Bluebridge; Patrick Sells, the 25-year-old founder of Sells Group; and Dave Knox, co-founder of Cincinnati-based accelerator The Brandery.

"Money is a big part of it," Kopp said, referring to what Hyde Park brings to the table, "but what we're trying to bring is that expertise that we've found companies really need at the early stage—and that's in sales, marketing and talent."

Hyde Park considers roughly 200 investment opportunities a year, Kopp said, and funds about 5 percent of them. It focuses on the Midwest, but has its eye on underserved markets, too, such as Toronto and Atlanta.

For new tech companies with revenue reaching up to $30,000 a month, Hyde Park typically makes seed investments of $100,000 to $250,000.

For businesses that are further along—making about $100,000 a month and at least doubling annual revenue—Hyde Park invests $1 million to $2 million, on average.
 

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