Minneapolis, Minnesota-based VC firm Arthur Ventures raised two funds totaling $470M.
$300M of the capital is earmarked for its early-stage venture fund and the remaining $170M for its second growth fund.
- The firm will continue its previous investment strategy of backing early-stage B2B tech startups outside Silicon Valley.
- The current funds bring its assets under management (AUM) to $1B.
- Arthur last raised two funds totaling $375M in 2021.
- Notable portfolio investments include Total Expert, WhenIWork, PhData, Drip, and Nomics.
- Co-managing partner Patrick Meenan said, "We expect early-stage software companies to continue to exhibit high revenue growth rates due in spite of macroeconomic headwinds, but we do expect to see a more rational valuation environment for the foreseeable future."
- Meenan admitted that it was a "challenging market" for raising new funds.
- In Q1 2023, VCs raised $11.7B across 99 funds, making it the worst quarterly total on record since 2017.
