Hyde Park Venture Partners (HPVP) of Chicago has secured $98M for its Fund IV, standing its ground amidst stiff competition from coastal venture capital firms. As a firm dedicated to enabling Midwestern startups, this marks an impressive stride.
The fund’s leaders, Greg Barnes, Guy Turner, and Allison Lechnir acknowledge the complexities of raising funds. They understand that this process is largely dependent on streamlining with the objectives of portfolio companies. Effective communication and innovative strategies have been at the hub of their approach to meet fundraising targets.
Significant financial contributors to the fund include NVNG, Cintrifuse Capital, Illinois Growth and Innovation Fund, RK Mellon Foundation, and Renaissance Venture Capital. Their funding mix comprises 25% from institutional investors, another 35% from family offices and the balance from individual high-net worth contributors.
HPVP’s commitment and support for Midwestern startups are evident in their backing for over 90% of such businesses.
Hyde Park’s $98M support for Midwestern startups
High-growth firms like ShipBob and Dentologie are among those who have reaped the benefits of HPVP’s strategy. The new fund is designed to finance around 20 to 22 businesses, typically writing checks ranging from $500,000 to $4 million.
Initial investments from the fund have been allocated to trailblazing ventures such as Diffit, an AI-powered educational platform, and CivCheck, a ground-breaking infrastructure planning tool. Both these ventures underscore the transformative potential of technology-driven solutions in various sectors.
Despite hurdles posed by a global pandemic and challenging competition, HPVP remains unwavering in its commitment to bolster the Midwest’s vibrant startup ecosystem. The firm asserts its strategic responsibility to offer not just financial support but also mentorship and market exposure to startups displaying high potential for growth, particularly in technology and innovation sectors. Furthermore, they highly value startups that have the backing of research institutions or are federal funding learners as they often epitomize the unity of academia, public policy, and entrepreneurship.
In the face of adversity, through its innovative approach, HPVP is determined to propel the Midwest’s bustling startup culture forward.”
