Quake Capital, an Austin, NYC and Los Angeles-based seed stage venture capital firm, is raising its second fund.
This second fund has a target of $30m and will be deployed over the next two years. The funds will be invested in about 150 accelerator companies ($150K invested in each), as well as follow on funding for these companies (about 30 or so, ranging from $200K to $400K).
The fund will be associated with Quake’s planned 10 accelerator cohorts spread across LA, Austin and NY.
Launched in January 2017 by Founding Partners Glenn Argenbright, Chad Burgess, Brandon Maier and Adam Cragg, the initial funds totaling $18m were invested in 31 startups (from 3,000 reviewed deals), participating in two accelerator classes.
The accelerator companies entered the program with an average valuation of $3m each. Less than 12 months later, that average valuation is in excess of $7m, or roughly 2.4x the original valuations.
Over 87% of portfolio companies have raised follow-on capital (and some of the remainder have not yet gone out to raise funds); 65% raised over $550K, 50% have raised capital from VCs and/or other institutional sources.