Update: This post has been updated from the original version. Shortly after publication, Maveron’s paperwork for “MEP Associates VII, L.P.” crossed the SEC wires. Rather than posting a new article, we added details of that filing to this post and amended the language of the post to reflect this new information.
On Tuesday afternoon, Maveron, a ‘consumer-only’ seed and early-stage venture capital firm, filed paperwork with the SEC indicating it’s raised capital for a pair of new venture funds totaling over $156 million. The firm also signaled intent to raise nearly $23.7 million more, though filings indicate that capital hasn’t yet been raised.
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Raised under the legal entity name Maveron Equity Partners VII, L.P., the firm’s seventh flagship venture fund is fully closed out at $143.57 million. The firm first closed capital for the fund on May 13, 2019, and raised from 31 institutional investors, according to information disclosed in the firm’s Form D filing.
Fund VII is considerably larger than Maveron’s sixth fund, which targeted $116 million according to April 2017 SEC filings for that entity.
As a sidecar to the Fund VII flagship, Maveron also raised $12.75 million for Maveron VII Entrepreneurs Fund, L.P.. According to the filing, the first of 40 investors committed capital to the new fund on May 13th as well.
Why the second, separate fund? Many venture firms will spin up separate but parallel funds which often co-invest alongside the flagship entity. The difference? Economics. These “sidecar” funds often have different management fee structures and carried interest terms in their limited partner agreements (LPAs), often to the benefit of the capital riding along in the parallel investment vehicle. Following the naming conventions of other firms, Maveron likely opened up its Entrepreneurs fund to the firm’s successful portfolio company founders who want to invest their newfound wealth back into venture capital.
Both filings were electronically signed by firm partner Pete McCormick and were dated May 28th, just over two weeks from the first close of capital.
In addition to these, the firm also filed paperwork for a third entity. Maveron intends to raise $23.68 million for MEP Associates VII, L.P.. The filing says that no capital has yet been closed for that entity.
The firm was founded in 1998 by Starbucks CEO Howard Shultz and Dan Levitan, former managing director at Wertheim Schroder & Co., which was one of the co-leading underwriters of Starbucks’s 1992 IPO. Schultz is no longer with the firm.
Maveron has invested in a number of prominent companies. Its early investments include the likes of Ebay, Drugstore.com, and Potbelly Sandwich Works. More recently, the firm has invested in a diverse set of consumer-focused companies. These range from apparel and footwear brands like Haute Hijab, Everlane and Allbirds to learning platforms like Course Hero and food brands like Imperfect Produce.
Maveron is based in Seattle and has an office in San Francisco.
Note: The day after publication, we were informed that the MEP Associates VII filing represents a capital commitment by the firm’s general partners. The transaction is in the process of being finalized. We updated the headline of this article, from citing “a pair” of funds raising $156 million, to a trio of funds securing $180 million.
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