Springdale Ventures Closes $40M Fund II

Brad Avery Dec. 18, 2023 at 6:04 PM

Austin-based venture capital firm Springdale Ventures announced today it has closed its $40 million Fund II.

Founded in 2019, Springdale is a consumer products-focused firm whose portfolio includes over 40 brands, including food and beverage companies such as Better Booch, KOS, Mr. Beast’s Feastables, BEATBOX, and better-for-you snack brand GOODLES.

This second fund is nearly twice the size of Springdale’s original Fund I and thus far has been used to make 14 new investments, including whiskey distiller Big Nose Kate, office furniture maker Branch, Asian-inspired hard seltzer maker Nectar, and BloxSnacks, among others.

“We are extremely grateful for the trust that our investors place in us to champion early stage consumer investing as a valued asset class,” said Springdale co-founder and general partner Genevieve Gilbreath in a press release. “In the United States, almost 40% of private equity capital capitalizes software companies, leaving the consumer sector significantly underfunded, yet, the consumer market constitutes a substantial 70% of the U.S. GDP. For investors who understand the category, there is a huge white space opportunity for capital allocation within early-stage consumer brands.”

In the release, Gilbreath said the firm intends to “more deeply explore” health and wellness categories for “both people and pets” in the new year.

According to AgFunderNews, Fund II will be used to invest in brands seeking seed through Series A funding rounds, with a check size of around $1 million. About a quarter of the fund will be held for follow-on investments, Gilbreath told the outlet.

On its website, Springdale said it seeks businesses with revenue between $1 million to $20 million and cites an average check size of around $750,000 with a $250,000-$2 million equity investment range.

“It has always been our mission at Springdale to collaborate with exceptional consumer brands who from an early-stage show signs of a great product, experienced team, passionate customer base, and attractive market opportunity,” said co-founder Dan Graham in the release. “We could not be more proud of the over 40 companies we’ve invested in across both Fund I and Fund II, and we look forward to continuing to partner with those pioneering new ways to make people’s, and even pets’, lives better.”