Today we’re excited to announce the close of Rally Fund V, a $240 million fund to invest in companies bringing innovative approaches to enterprise technology.
We’re proud to have the continued support of our existing investors and the addition of new investors with a long-term commitment to venture capital demonstrate their confidence in our team’s ability to identify and nurture the next generation of tech leaders.
The Rally team is led by experienced investors with a strong track record of outperformance through multiple cycles and a decades long history working together. We recently announced the addition of former Google CIO Ben Fried, who strengthens our expertise in engineering leadership, cybersecurity, building enterprise software and AI/ML.
As a team, we pride ourselves on taking an in-depth operational approach to working with portfolio companies. Recognizing that no single individual has all the answers, Rally leverages the expertise of over 100 Rally Tech Partners — with backgrounds spanning marketing, sales, leadership, finance and engineering — who help source, evaluate and support our early-stage companies.
The Tech Partners are a unique component of Rally’s approach to early-stage investing, and, as a group, they have invested over $130 million in the firm. Tech Partners provide Rally with an invaluable source of proprietary early-stage opportunities: Over 60% of the companies in the Rally portfolio were sourced by Tech Partners.
The Tech Partners platform provides Rally portfolio companies with rare access to a broad network of veteran tech leaders and the ability to work alongside legendary technologists and entrepreneurs committed to helping their companies grow. Rally portfolio companies have an average of seven Tech Partners engaged in the operations of their business — as board members, executives, advisors, mentors, partners and customers.
This latest capital raise puts Rally Ventures over $1 billion in total assets under management. Since its founding in 2012, Rally Ventures has invested in 76 companies and has had 19 successful exits, including 3 initial public offerings. Notable investments from previous funds include Arctic Wolf, Bugcrowd, Harness, UiPath, Total Expert, Braze (IPO), Carbon Black (IPO, subsequently acquired by VMware), Coupa (IPO), SportsEngine (acquired by NBC Sports), Twistlock (acquired by Palo Alto Networks) and Verodin (acquired by FireEye).
Fund V will continue Rally Ventures’ history of investing in promising early-stage startups. We’re particularly keyed into four main areas of growth as we move into 2024:
- Cybersecurity: An order of magnitude increase in remote access of sensitive data creates critical new vulnerabilities in corporate security while a new paradigm of computing opens an entirely new set of security risks.
- Future of Work: Covid-19 accelerated the already changing nature of work, driving a plethora of opportunities and accelerating innovation in the way we work.
- SaaS+: An emergent business model leveraging traditional SaaS platforms to provide a broader set of value-add products to customers and generate significant new revenue streams for the provider.
- AI/ML: AI is set to disrupt virtually every industry, business process and even the very development of software for both start-ups and mega-tech companies.
We’ve been fortunate at Rally to partner with exceptional founders and teams building disruptive technologies over the past decade. We’re looking forward to partnering with the next cohort of visionary entrepreneurs who are driven to build breakthrough technology companies.