Announcing Craft III: $1.1 Billion for SaaS and Marketplaces

Jeff Fluhr
Aug 4 · 4 min read

Today we are announcing the closing of our two latest funds — Craft Ventures III ($612 million) and Craft Ventures Growth I ($510 million) — for a combined $1.12 billion. This brings our total assets under management to $2 billion. Combining our new growth fund with our flagship venture strategy gives us the ability to invest in the most exciting companies across both early and growth stages.

Over the last four years at Craft and prior to that as angel investors, we have backed over 30 unicorn companies at an early stage. Through our first two funds, we have had the privilege of partnering with dozens of visionary founders at their Series A or Series B round, and invested in many more at the seed stage. Some of the unicorns in Fund I and Fund II include Addepar, Bird, Bitgo, ClickUp, Multicoin, Neuralink, Pipe, Reddit, Sourcegraph, and SpaceX — and many more are on their way.

INVESTMENT FOCUS

While Craft has invested in market-defining companies across many categories, we have a special focus on two areas where we have unique expertise:

SaaS

SaaS businesses are attractive for their predictable, compounding recurring revenue. Moreover in our view, Bottom-Up SaaS companies, which have the ability to spread virally like a consumer product, are some of the most attractive opportunities because of their growth potential. At Craft, this practice area is led by David Sacks, who pioneered the “consumerization of the enterprise” as founder and CEO of Yammer, where he adapted growth tactics previously learned as founding COO of PayPal. SaaS companies in Craft’s portfolio include Addepar, AgentSync, ClickUp, OpenPhone, Scratchpad, Sendoso, Sourcegraph, and Vendr.

Marketplaces

Marketplace businesses are attractive for their strong network effects, liquidity-driven flywheels, and deep moats for defensibility. At Craft, this practice area is led by Jeff Fluhr, who created the playbook for vertical marketplaces as the founder and CEO of StubHub. The hyper-verticalization of marketplaces is now in full force, and Craft has invested in some amazing companies as part of this thesis, including Instawork, Seated, Shef, Snackpass, and Trusted.

EXPANDED TEAM

In a time when capital is abundant, our real value is advice and support. Every member of the Craft team has either been a unicorn founder or a successful operator. This deep industry expertise means that everyone at Craft is equipped to provide input or serve as a sounding board when founders need it most.

Operating Partners

For Fund III, Craft has doubled the size of our team of Operating Partners, seasoned former executives who can provide mentorship and advice to founders. This team helps our companies grow and navigate obstacles along the way. Areas of expertise include:

New Investing Partners

We are also delighted to announce four new partners on our investment team:

THE ROAD AHEAD

With the expansion of our team and the closing of our third venture fund and first growth fund, Craft is poised to double down on our mission to partner with the most promising early-stage and growth-stage software founders. We look forward to continuing our focus in areas we know well — SaaS and Marketplaces — and dedicating even more resources to help support the next generation of iconic companies.

Craft Ventures

Craft Ventures is an early-stage fund dedicated to the…