Key Takeaways
- • The 81 Collection announced an additional close of its second fund at $82 million, double the size of its 2021 debut fund, bringing total firm AUM to more than $145 million (per Business Wire).
- • Fund II targets founder-owned businesses in services, manufacturing, and the physical sectors, which the firm argues represent 81% of the U.S. economy and are underserved by most venture capital.
- • The firm seeks companies with $4 million to $20 million in annual revenue growing 40% or more per year, with total investments of roughly $8 million to $10 million per company.
- • Fund II has made two investments to date: Uptiv, a tech-enabled infusion center operator in Michigan, and Terra, an AI-native freight brokerage platform.
- • The firm is led by founder and general partner Vijen Patel, co-founder Alex Kirshenbaum, and former Tide Cleaners COO Jeff Jasurda, with advisor Scott Malpass, former CIO of the University of Notre Dame.
Summary
Chicago-based investment firm The 81 Collection announced an additional close of its second fund at $82 million, according to a Business Wire release. The fund is double the size of the firm's 2021 debut fund and lifts total assets under management to more than $145 million. The firm was founded five years ago on the thesis that sectors representing 19% of U.S. GDP received 55% of venture capital attention, leaving the remaining 81% of the economy, which the firm says employs most Americans, to compete for what is left.
Fund II will invest minority stakes in founder-owned businesses in services, manufacturing, and what the firm calls the physical world. The 81 Collection targets companies with $4 million to $20 million in annual revenue growing at 40% or more per year, and aims to be the first and last institutional investor in those businesses, writing checks of about $8 million to $10 million. The firm's investment approach emphasizes capital efficiency and cash-flow funding rather than the traditional venture model.
Founder Vijen Patel, who co-founded Pressbox (now Tide Cleaners) and grew it to 1,000 locations using cash flow, said that most venture capitalists fund companies that might work, while the firm backs companies that already do. Fund II has made two investments so far: Uptiv, which operates tech-enabled infusion centers in Michigan, and Terra, an AI-native freight brokerage platform. A founder and CEO of a Fund I portfolio company praised the firm's operational experience, and Brian Stal, Director of GSD at DNS Capital, cited the firm's community of operators as a differentiator and said DNS Capital supported Fund I and plans to invest in Fund II.
Fund II will invest minority stakes in founder-owned businesses in services, manufacturing, and what the firm calls the physical world. The 81 Collection targets companies with $4 million to $20 million in annual revenue growing at 40% or more per year, and aims to be the first and last institutional investor in those businesses, writing checks of about $8 million to $10 million. The firm's investment approach emphasizes capital efficiency and cash-flow funding rather than the traditional venture model.
Founder Vijen Patel, who co-founded Pressbox (now Tide Cleaners) and grew it to 1,000 locations using cash flow, said that most venture capitalists fund companies that might work, while the firm backs companies that already do. Fund II has made two investments so far: Uptiv, which operates tech-enabled infusion centers in Michigan, and Terra, an AI-native freight brokerage platform. A founder and CEO of a Fund I portfolio company praised the firm's operational experience, and Brian Stal, Director of GSD at DNS Capital, cited the firm's community of operators as a differentiator and said DNS Capital supported Fund I and plans to invest in Fund II.
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