Swell VC Closes $11.5M Fund II, Proving Small Funds Can Deliver Big Wins

Fund I's success highlighted by DPI-producing acquisitions, top-decile portfolio performance, and the GPs' hands-on role in helping portfolio companies build top-tier teams 

NEW YORK, Oct. 15, 2024 /PRNewswire/ -- Swell VC, an early-stage venture capital firm that invests in market-defining opportunities, has closed Fund II with $11.5 million in commitments. The fund's backers include a diverse mix of successful founders, family offices across tech, finance, and real estate, as well as prominent NYC tech investors and Fortune 500 executives.

At a time when Carta's data shows slow capital deployment and minimal LP returns across the VC landscape, Swell VC stands apart. With $19 million in Assets Under Management (AUM) across two funds and a special purpose vehicle (SPV), Swell VC's concentrated portfolio strategy has led to DPI-producing acquisitions such as ScienceIO and strong performance from companies like space tech leader Loft Orbital, which serves major customers like Microsoft Azure, Honeywell, and the U.S. Federal Government, and has driven over $100 million in revenue.

"The strength and alignment of our LP base is unique to Swell VC. They're not just capital allocators but true partners who have believed in us from day one, sharing our vision to build a venture franchise anchored by strong judgment. Many have doubled or even increased their commitments up to 10x from Fund I to Fund II," said Jay Patil, Co-Founder and General Partner at Swell VC.

"We reject the 'spray and pray' approach that dilutes ownership and leads to underperformance. In Fund I, we placed larger checks—6% of the fund—into fewer companies, maximizing ownership where the upside was asymmetric and returns uncapped. Fund II scales this proven model with bigger checks and more ownership, and founders appreciate knowing they're not one of 50 companies in a fund—we're in it for the long haul," added Rusty Ralston, Co-Founder and General Partner at Swell VC.

A Founder-First Investment Approach

What sets Swell VC apart is not just its investment strategy, but its deep commitment to helping founders build exceptional teams. Ralston and Patil bring over 14 years of experience evaluating and recruiting top-tier talent, honed during their time as early employees at an AI talent assessment startup.

"What's unique about Swell VC is their personal commitment to building world-class teams. Rusty and Jay have personally recruited over 50 go-to-market hires across my startups, TapAd and Crisp, helping us find the top 1% of candidates to drive success. They don't just provide capital—they're true partners fully invested in our growth. Beyond that, they've introduced us to investors, customers, and partners who've made a real difference. They're more than just investors—they're great partners and friends, always in your corner," said Are Traasdahl, CEO of Crisp.

A Portfolio Poised for Market Transformation

Swell VC's portfolio is built around startups who have the potential to transform entire industries. The firm has a track record of backing companies that have received follow-on funding from top-tier investors like Union Square Ventures, Spark Capital, and FirstMark Capital. Swell portfolio companies include:

• Loft Orbital: Raised $140M in Series B funding, providing businesses and governments with plug-and-play satellite infrastructure and software for seamless access to space
• Crisp: Raised $97M in funding, they are transforming the CPG supply chain to reduce waste and increase profitability through their Collaborative Commerce and data-sharing platform, used by over 6,000 customers and more than 80 of the top 100 CPG brands, including Walmart, Target, Nestlé, and Kraft
• CredalAI: Delivers secure data infrastructure for enterprises building AI apps, counting clients like TransferWise, MongoDB, and Checkr

To learn more about Swell VC's portfolio or to get in touch, visit swell.vc.

About Swell VC

Swell VC is a pre-seed and seed-stage venture capital firm focused on category-defining opportunities in high-growth sectors like B2B infrastructure, AI, space, healthcare, commerce, and defense. The firm focuses on backing founders with a commercial mindset, exceptional intellectual horsepower, and an obsessive drive to solve massive problems. With a deep understanding of talent dynamics and an unwavering commitment to supporting founders, Swell VC has built a reputation for driving portfolio success through strategic recruiting, follow-on fundraising, and industry-leading partnerships. Learn more at swell.vc.

Media contact:

Liza Vilnits, [email protected]

SOURCE Swell VC