In 2020, Ironspring Ventures launched to support startups in industrial sectors like construction and manufacturing, which were often overlooked by early-stage venture firms. Now, the Austin, Texas-based firm has raised $100 million for its second fund to focus on industrial startups. This is a significant increase from the firm’s initial $61 million fund in 2021. The recent funding round allowed Ironspring Ventures to bring on board its first principal, Colleen Konetzke, and a head of the platform, Stephanie Volk. The firm plans to invest Fund II in 20 startups, supporting approximately three companies per year.
Ty Findley, the co-founder, and general partner of Ironspring Ventures, emphasized the importance of the venture industry’s deep understanding of industrial markets. He pointed out that industries such as manufacturing, construction, transportation, and energy make up over half of the U.S. GDP. Findley highlighted the necessity of not letting the U.S. fall behind in these critical sectors.
Ironspring Ventures previously backed 16 companies with its first fund, including Solvento, OneRail, and Prokeep. With Fund II, the firm has already invested in six companies and deployed a quarter of the fund. The increased capital from Fund II allows Ironspring Ventures to write larger checks, ranging from $2 million to $4 million, to stay competitive in the growing market of seed rounds.
Findley expressed enthusiasm about investing in industrial sectors due to macroeconomic trends favoring these industries. Factors such as supply chain disruptions, geopolitical conflicts, and new policies are driving interest and investment in areas like manufacturing and transportation. Additionally, advancements in AI technology are expected to revolutionize these sectors, attracting top tech talent to make a significant impact.
One of Ironspring Ventures’ successful investments is GoodShip, a freight orchestration platform founded by former Convoy operators. While more prominent firms like Andreessen Horowitz and General Catalyst have entered the industrial sector space, Findley sees them as allies rather than competitors. He believes that increased capital inflow benefits the industry and fosters collaboration for downstream growth.
The firm’s unique selling point lies in its sector expertise and LP base, which consists of industry operators who can provide valuable guidance and potentially become customers for portfolio companies. Ironspring Ventures’ location in Austin, a city with a rich history in the industries they focus on, further strengthens its position in driving the digital industrial revolution.
Findley emphasized the firm’s long-term commitment to ensuring critical industries do not lag behind. By leveraging their expertise, network, and capital, Ironspring Ventures aims to support the growth and innovation of industrial startups, contributing to the overall advancement of these vital sectors.