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Venture capital firm Forerunner Ventures has been making a name for itself by investing in early-stage startups like Jet, Bonobos, and Glossier. However, as the retail industry continues to evolve, so does Forerunner. To adapt to the changing landscape, the firm brought on veteran VC Brian O’Malley five years ago to lead its expansion into the enterprise software sector.
O’Malley has since been instrumental in helping Forerunner Ventures make successful investments in companies like AppDynamics, which was acquired by Cisco for $3.7 billion, and Plaid, which was acquired by Visa for $5.3 billion. Now, Forerunner is looking to further expand its reach in the enterprise software space with the launch of a new $500 million fund.
The new fund, called Forerunner Fund V, will focus on investing in early-stage enterprise software companies. Forerunner believes that there is a significant opportunity in this sector, as businesses increasingly rely on software to streamline their operations and improve efficiency. The firm aims to identify and support the next generation of software companies that will shape the future of the enterprise software market.
Forerunner Ventures has a track record of spotting successful companies early on and helping them grow. The firm’s investments in Jet, Bonobos, and Glossier have all paid off handsomely, with Jet being acquired by Walmart for $3.3 billion, Bonobos being acquired by Walmart for $310 million, and Glossier reaching a valuation of $1.2 billion.
With the launch of Forerunner Fund V, the firm is looking to replicate its success in the enterprise software sector. The fund will invest in companies at the seed and Series A stages, providing them with the capital and support they need to scale their businesses. Forerunner believes that by focusing on early-stage companies, it can have a greater impact and help shape the future of the enterprise software market.
Forerunner Ventures has a unique approach to investing. The firm takes a long-term view and looks for companies that have the potential to become category leaders. It also looks for companies that have a strong brand and a deep understanding of their customers. By investing in companies that meet these criteria, Forerunner aims to create lasting value and generate significant returns for its investors.
The launch of Forerunner Fund V comes at a time when the enterprise software market is experiencing rapid growth. According to a report by Grand View Research, the global enterprise software market is expected to reach $634.7 billion by 2027, growing at a CAGR of 8.9% from 2020 to 2027. This presents a huge opportunity for investors like Forerunner Ventures to capitalize on the market’s growth and generate substantial returns.
Top things to Know
– Venture capital firm Forerunner Ventures is launching a new $500 million fund called Forerunner Fund V.
– The fund will focus on investing in early-stage enterprise software companies.
– Forerunner Ventures aims to identify and support the next generation of software companies that will shape the future of the enterprise software market.
– The firm has a track record of successful investments in companies like Jet, Bonobos, and Glossier.
– The global enterprise software market is expected to reach $634.7 billion by 2027, presenting a significant opportunity for investors.
Original article: https://techcrunch.com/2023/07/18/forerunner-ventures-sees-a-future-full-of-digitally-native-franchises/
