Aspect Ventures raises $181m for second early-stage fund


Aspect Ventures has closed its second early stage fund on $181m, above the top end of its target range.

The fund, which comes three years after Aspect’s debut vehicle closed on $150m, has the backing of Melinda Gates, Cisco and Knollwood Investments. Like its predecessor, the firm will use the funds to continue to invest in early stage technology companies.
Founded in 2014, Aspect’s first fund included cybersecurity businesses Forescout Technologies, Cato Networks, and Exabeam. The venture firm recently realised its first portfolio company IPO, with Forescout Technologies, a leading IoT security company, going public at the top end of its range and currently valued at over $1bn.

Janey Hoe, VP of corporate development of Cisco, another institutional investor in Aspect’s Fund II stated, “Aspect is a great investment for us, and we also love what the team represents: “diversity begets diversity.” Aspect’s diverse investing team and collaborative nature differentiates the firm from others in terms of its portfolio and its approach to working with entrepreneurs and investors alike. Aspect Venture’s shared focus on early stage cybersecurity innovations has been an added source of value to us.”

Aspect recently announced additions to its investing team, including Kendra Ragatz as General Partner & COO, cybersecurity veteran Mark Kraynak, and former enterprise software executive Chad Herrin.

Along with cybersecurity, Aspect Ventures has also backed future of work-focused companies Crew, Gusto, Chime, and The Muse, and digital health startups such as Vida Health, Grokker, and Solv.

The firm, which was founded by Jennifer Fonstad and Theresia Gouw, also has a track record of backing FinTech startups, investing in WealthTech, payments and remittances, and infrastructure and enterprise software.

Last year, Aspect was involved in a $12m funding for Generation Z credit card provider Deserve. The round led by Accel and also featured participation from Pelion Ventures, Mission Holdings, Alumni Venture Group and GDP Ventures.

Copyright © 2018 RegTech Analyst

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