Torch Capital closes $200M-plus fund to propel consumer tech
Torch Capital, an early-stage venture capital firm, closed more than $200 million in fresh capital, fueling investments in tech-enabled brands and platforms that can make a dent in the consumer ecosystem.
Why it matters: The fundraising represents a bright spot in an otherwise difficult financing environment and highlights optimism in early-stage investing.
What they're saying: The firm was able to achieve this because its limited partners are familiar with its past successes, Torch managing partner Jonathan Keidan says.
- “We’ll build, they’ll come,” he says.
Zoom in: With the new capital, the New York-based company will have more than $400 million in assets under management.
- The company has invested in CBD-infused beverage company Recess, Rihanna-backed intimates and apparel brand Savage x Fenty, and ready-to-eat healthy meals provider Splendid Spoon.
- It has seen the exits of luxury streetwear e-retailer Highsnobiety, which was acquired by Zalando last year, and Sweetgreen, which went public in 2021.
Zoom out: Keidan sees the current economic uncertainty as "a great time for early-stage investing."
- Plus, he says, “lower valuations force focus,” making them an attractive investment.
- “Companies that get through that, have a good chance in the market.”