SNAK Venture Partners has officially announced the successful closing of its inaugural fund, raising an impressive $50 million. This fund is notably backed by the renowned investment firm Pritzker Group, established by Illinois Governor JB Pritzker and his sibling, Tony.
The founders of SNAK, Sonia Nagar and Adam Koopersmith, previously contributed to the Pritzker Group, where they played pivotal roles in investments in companies such as the automotive marketplace Backlot Cars and TicketsNow, which was acquired by Ticketmaster. Motivated by their experiences, they launched their own firm earlier this year, focusing on supporting digital marketplaces.
Nagar expressed, "The timing felt right, and there was substantial support within the firm to embark on this journey." Their vision emphasizes the vast potential for digitization across various sectors, including supply chain and construction. With advancements in fintech, even traditionally resistant industries are beginning to embrace new technologies.
Highlighting the success of major ventures like Uber, Instacart, and Airbnb, Nagar noted, "These represent some of the top outcomes in the venture landscape." Companies that have successfully attracted billions in investments, gone public, and delivered significant returns to their investors.
"Most of these successes have been in the consumer sector, which typically evolves more rapidly than larger enterprises," she added. "We believe there is a significant opportunity to concentrate on B2B marketplaces, specifically targeting sectors that have yet to undergo digitization."
SNAK has already made investments in six companies, including BigRentals and Repackify, which specialize in equipment rental and packaging logistics, respectively. The firm aims to invest in at least 20 companies, with seed investments ranging from $1 million to $2 million each, and plans to deploy the entire fund within the next three to four years.
Despite the challenges many new funds face in raising capital, Nagar and Koopersmith leveraged their extensive backgrounds to attract limited partners (LPs). Nagar's prior experience includes launching Amazon's apparel division in 2009 and leading mobile initiatives at RetailMeNot. Koopersmith brings 20 years of experience from the Pritzker Group and has served on the boards of various marketplace companies. Nagar acknowledged that without Pritzker's backing, securing funds would have been much more challenging, especially given last year's market conditions.
The fund also counts the State of Illinois Growth and Innovation Fund among its LPs, as well as executives from marketplace companies like Favor Delivery and RetailMeNot.
Nagar emphasized that SNAK is not limited by geography, recognizing that valuable marketplaces can emerge outside traditional tech hubs like Silicon Valley and New York City. "We're discovering these overlooked founders in regions that may not attract other funds," she remarked.
Based in Chicago, SNAK faces some skepticism from LPs regarding its location. "While some see this as a disadvantage, we consider it an advantage," she concluded. "Our location allows us to connect with everyone quickly."