Capstar Ventures Closes Inaugural Fund at $41.3 MillionAugust 02, 2021 Kelly Kovack
August 02, 2021
Kathryn Cavanaugh, founder of early-stage venture capital firm Capstar Ventures, closed her first fund with $41.3 million of capital commitments.
WHO: Founded by Kathryn Cavanaugh in 2019, Capstar Ventures is an early-stage venture capital firm that invests in the next generation of innovative consumer companies. They invest broadly across the consumer sector at Seed and Series A in digitally native brands, consumer goods and services, and technologies that power these start-ups.
IN THEIR OWN WORDS: "Kathryn embodies the type of fund manager we set out to back through the launch of our Project Spark initiative and we are thrilled to partner with Capstar Ventures on its inaugural fund," said Jamie Kramer, Head of Alternative Solutions at J.P. Morgan Asset Management and Investment Committee Chair for Project Spark. "Kathryn brings a unique perspective, deep expertise and a differentiated vision for investing in the next generation of consumer companies, and we're pleased to be participating in the fund."
“We seek to invest in founders who are solving their own pain points and who directly relate to and resemble their customers because we have seen how that authentic connection translates into high growth companies," said Kathryn Cavanaugh, founder and Managing Partner of Capstar Ventures. "And how Millennial and Gen Z consumers resonate with that authenticity as they align their purchasing power with their values.”
In 2019, Cavanaugh moved to Austin to launch Capstar Ventures with anchor capital from successful Texas entrepreneurs Steve Hicks, Kendra Scott, and Robert Gauntt. "Steve, Robert, and I are thrilled for the opportunity to partner with Kathryn to launch Capstar Ventures because we share a commitment to supporting the innovation and passion that entrepreneurs contribute to our world, and believe it is critical to building a brighter future," added Kendra Scott, founder of Kendra Scott LLC. "We feel fortunate for the opportunity to support those in the earlier stages of building their business and to work alongside phenomenal partners to provide more diverse founders a seat at the table."
- The $41.3 million was raised from an experienced group of individuals, family offices, and institutions including Capital Creek Partners, Tiger Partners L.P., and J.P. Morgan.
- The VC fund has invested in 10 portfolio companies to date, including Stylust, a commerce technology platform used by 100+ retail brands; Bravo Sierra, the first military-native wellness company; and The Class, a health and wellness platform.
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