Snak Venture Partners Closes $50M Fund to Fuel Next-Gen Marketplace Startups
Snak Venture Partners has officially closed its oversubscribed $50 million debut fund, marking a bold entry into the venture capital world with a clear focus on digitizing B2B and vertical marketplace businesses. Pritzker Group provided the principal funding that established the foundation for the fund according to its co-founder J.B. Pritzker who serves as Illinois governor and his brother Tony Pritzker.
The Chicago-based venture capital firm was formed earlier this year by Sonia Nagar and Adam Koopersmith, two experienced investors who previously worked together at Pritzker Group. The company shows established expertise in marketplace investments through its support of Backlot Cars and TicketsNow, which Ticketmaster later purchased.
Snak’s debut fund started with an initial goal of $40 million but investor demand exceeded expectations, which enabled the fund to close at $50 million. The initial success demonstrates that the team has gained market confidence about their vision and digital transformation potential in industries that have just started their digital transformations.
A Focus on Underserved and Legacy Markets
The firm is betting on the prediction that consumer markets have established online operations for ride-hailing and home rental servicesyet complex industries continue to use offline methods which include spreadsheets and phone calls and email communication. Snak believes this “white space” creates an opportunity for startups which can develop efficient digital platforms that serve multiple sectors including construction and supply chain and logistics and industrial supply and equipment rental.
Snak plans to make seed-stage investments in at least 20 companies over the next three to four years, typically writing checks of around $1 million to $2 million. The fund has already made its initial investments through teams which include BigRentals that operates equipment rental marketplaces and Repackify that specializes in packaging logistics, both of which represent vertical marketplace models that Nagar and Koopersmith consider to have potential.
Backing and Founders’ Experience
The Pritzker Group joins with Snak’s limited partners who include Illinois Growth and Innovation Fund and marketplace executives from Favor Delivery RetailMeNot Wayfair and Faire. The backers contribute both financial resources and operational expertise and industry connections which Snak requires to develop its business operations.
Nagar and Koopersmith developed their business model through the combination of two distinct elements which included investment principles and operational capabilities. The two founders of the company have explained how their experience with marketplace development systems allows them to understand business operations through two essential elements which include network effects and supply-demand trends that exist in complex industrial and B2B markets.
Venture capital interest in marketplaces has waxed and waned over the years. Some experts believe that consumer marketplaces have reached their limits because all significant business potentials have been explored. The founders of Snak contend that vertical marketplaces which connect buyers and sellers in essential economic sectors represent the actual new market territory.
The companies work to transform business sectors that have traditionally resisted digital technology implementation. The construction materials and automotive parts industries continue to depend on multiple vendors and traditional selling methods. The new venture partners plan to develop digital systems for these industries to create efficiency improvements that will generate substantial benefits for both investors and end users.
Snak Venture Partners established itself as the primary investment partner for entrepreneurs who create marketplaces that solve actual world issues beyond normal consumer technology solutions after the company completed its first fund and began its initial investment activities. The firm supports its portfolio companies through direct assistance and access to its network and its practical approach to business development which helps them achieve both rapid and sustainable growth.
If Snak proves its thesis to be valid digital transformation for B2B and industry-specific platforms will emerge as a major investment category which will attract both new capital and upcoming founder generations to venture capital.