SNAK Venture Partners, a new investment firm, has raised a $50 million fund to support the growth of vertical marketplaces. The firm, co-founded by Sonia Nagar and Adam Koopersmith, is backed by the prestigious Pritzker Group, founded by Illinois Governor JB Pritzker and his brother Tony. With a focus on digital marketplaces, SNAK aims to capitalize on the vast opportunities in supply chain and construction sectors, which are yet to be fully digitized.
Nagar and Koopersmith's decision to start their own firm was influenced by their successful track record in leading investments at the Pritzker Group. They have previously backed companies like Backlot Cars and TicketsNow, which were eventually acquired by Ticketmaster. The duo believes that the current market conditions are ideal for their venture, as even industries resistant to change are becoming more open to adopting new technology as fintech architecture advances.
SNAK's investment strategy targets B2B marketplaces, particularly those in sectors that are not yet fully digitized. They have already invested in six companies, including BigRentals and Repackify, focusing on equipment rental and packaging logistics. The firm aims to invest in at least 20 companies, providing seed funding of $1 to $2 million per company. They plan to deploy the entire fund within the next 3 to 4 years.
Despite the challenges of raising capital, SNAK's founders were able to secure funding due to their strong backgrounds and connections. Nagar's experience in launching Amazon apparel and her role as head of mobile at RetailMeNot, along with Koopersmith's 20 years at Pritzker Group and his board membership in various marketplace companies, were crucial in attracting investors. The firm's location in Chicago, which some LPs initially questioned, is now seen as an advantage, allowing for quick access to potential opportunities.
SNAK Venture Partners is committed to discovering hidden gems beyond Silicon Valley and New York City, seeking out founders who might have been overlooked by other investment firms. With a supportive team and a strategic approach, SNAK is poised to make a significant impact in the world of digital marketplaces.
