Bullpen Capital Launches $140m Fund IV and Introduces 'Playoff' Fund for Later-Round Investments

SAN FRANCISCO, June 28, 2018 /PRNewswire/ -- Bullpen Capital today launched Bullpen IV, a $140 million venture fund that will continue the firm's leadership in Post-Seed investing. Bullpen IV was oversubscribed to its hard cap. The firm now enjoys support from a diverse group of institutional investors who see in Bullpen a distinctive and high-performance venture capital strategy. To support rapidly-growing companies from Bullpen's prior funds, the firm also launched the Bullpen Playoff fund for later-stage follow-on investments in the emerging winners from Funds I, II and III.

Bullpen created the "Post-Seed" round, a venture capital financing after the Seed Stage that sets up a "supersized" Series A. This round is a critical financing tool for underappreciated, fast-growing companies that have achieved product-market fit. By investing in this Post-Seed gap, Bullpen can inject small amounts of capital that propel startups towards a big A round and give founders more control over their future.

Since launching in 2010, Bullpen has funded nearly 80 companies projected to generate over $5 billion in revenue this year. Its portfolio companies graduate to their next funding round at a 70 percent rate and have raised more than $1.8 billion in downstream funding.

"Our first three funds thrived because we toss aside conventional wisdom and look at the real merits of a startup," said Paul Martino, General Partner at Bullpen. "Bullpen IV will carry on our tradition of ignoring hype and trusting data."

Bullpen IV debuts in a big year for Bullpen's portfolio. On May 14, 2018, the U.S. Supreme Court struck down the Professional and Amateur Sports Protection Act, a 1992 law that banned sports gambling in most states except Nevada. As many as 32 states are poised to legalize sports gambling within five years, re-enfranchising $150 billion worth of betting.

The decision is a game-changer for FanDuel, a leader in fantasy sports and Bullpen investment, which can now expand into sports betting. Dublin-based Paddy Power Betfair acquired FanDuel just nine days after the ruling. FanDuel now has the potential to become the U.S.'s largest sports betting company.

Other Bullpen companies benefited from the news too. Jackpocket, Bullpen's digital lottery app, is at the center of the newly legalized sports betting as several states have announced the lottery will be the oversight organization. Sports trivia and betting app Halftime Live by Readyfire expects to scale nationally soon.

Bullpen's portfolio also has excelled outside the gambling space. Recent investments in BeBop, a maker of fabric sensors, and Ocrolus, an automated document analyzer, bring Bullpen into new fields. In January 2018, Grove Collaborative, an e-commerce site for home goods and personal care, raised a $35 million Series C. The Bullpen Playoff fund will invest in Grove Collaborative and other portfolio companies as they reach later growth stages.

"Bullpen has built a deep bench of sophisticated investors with a differentiated strategy that has proven itself again and again. Their discipline to stick to their strategy is remarkable in an industry that can feel like a minefield," said Sarah Anderson, Managing Director at Cintrifuse. "They are dedicated partners to their founders, with a straightforward and honest approach. We are proud to be in Fund IV."

About Bullpen Capital

Bullpen Capital is a venture firm that invests in startups between their Seed and Series A rounds. This differentiated 'Post-Seed' strategy catapults startups to a supersize Series A while giving founders more control over their future. Since 2010, Bullpen has invested in nearly 80 companies projected to generate over $5 billion in annual revenues. Collectively, they have raised $1.8b in follow-on funding. Bullpen seeks out startups that have achieved product-market fit in nontraditional locations and markets ranging from sports betting and medical cannabis to the Internet of Things and the sharing economy. The portfolio includes well-known companies such as FanDuel, Wag!, SpotHero, Ipsy, and Namely. For more information visit www.bullpencap.com.  

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SOURCE Bullpen Capital

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