Boston’s M33 Growth Raises $260M For Its Second Fund Focused On Scaling Previously Bootstrapped Businesses

Boston-based venture capital firm M33 Growth announced Friday that it has raised $260 million for its second flagship venture fund.

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The firm’s debut fund closed out at $180 million in October 2017.

M33 Growth is led by co-founding managing directors Brian Shortsleeve, Gabe Ling and Mike Anello.

Prior to M33 Growth, Shortsleeve was a managing director at General Catalyst and served stints in leadership and directorship roles at the Massachusetts Department of Transportation and the Massachusetts Bay Transportation Authority. Ling is also an alumnus of General Catalyst, where he served as partner for 13 years prior to starting M33 Growth.

Anello was a senior associate in General Catalyst’s growth equity group and, between 2013 and 2017, co-founded a travel booking startup, worked on the special projects group at Tesla, worked with Valor Equity Partners, and served in board and leadership roles at a number of other companies.

The firm employs 15 people at its Boston headquarters.

M33 Growth is broadly focused on technology and health care, but there is notable variance in its investments.

The firm states in its press release that it “invests growth capital and applies its deep operational experience to optimize go-to-market teams and execute on strategic acquisitions.”

“M33 Growth was founded to fuel the growth of the next great success stories in American business,” said Shortsleeve in the press release announcing Fund II. “We seek to partner with scrappy founders who have built great companies by bootstrapping their way to profitability and are looking for a partner to help them accelerate growth. Our second fund marks not only the next milestone for our firm, but also a tremendous platform to continue to expand the sales and go-to-market expansion and strategic sourcing platform that we believe will drive growth in our companies.”

The firm’s website lists a number of its current and prior portfolio companies. M33 Growth’s current portfolio consists of AssuriCare, RHI Group, The Oncology Institute, Titan Cloud and W Energy Software.

The firm says that AssuriCare provides software and services which helps to minimize “fraud, waste, and abuse in the long-term care industry.”

RHI Group is in the business of investing in and partnering with traditional retailers to help them market themselves more effectively. M33 Growth is currently co-invested, alongside RHI Group, in Reebee and previously co-invested in Datalogix (acquired by Oracle) and Index (acquired by Stripe).

The Oncology Institute operates cancer treatment centers which also offer patient and family services like financial, dietary and end-of-life counseling.

Titan Cloud offers retailers in the fuel industry the ability to monitor inventory levels and delivery scheduling, manage their facilities, and track exposure to and compliance with environmental regulations. And, in a similar vein, W Energy Software provides cloud-based enterprise resource planning software to “upstream and midstream oil and gas companies.”

In addition to Datalogix and Index, M33 Growth’s prior portfolio includes CLEAResult, Axium, Oceans Healthcare, OGSystems, Datto, Brighter, and OM1.

Illustration: Li-Anne Dias.

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