Pioneer Square Labs’s Prior Success and Newest Fund
PSL has been a major driving force of startup growth in the Pacific Northwest region. The company runs both a startup studio and a venture capital fund in order to fully support the growth of startups in all possible ways. Recently, the company raised $100 million for their second venture fund. The initial goal was only to raise $80 million, but existing business partners and investors maintained such high levels of enthusiasm and demand that the fund was eventually pushed higher.
The business model for investing followed by PSL revolves around funding startups early in their development, focusing specifically on the Pacific Northwest region, and leading or co-leading the funding rounds. In fact, the company has spun out 25 different businesses in five years, representing 15% of all early-stage tech companies that have raised any kind of venture funding in Washington state during that period of time. Additionally, 70% of companies that PSL has invested in were in their first two months of development, showing the level of consistency PSL has toward early-stage startups in the Pacific Northwest region.
PSL’s Plans for Its New Venture Fund
PSL plans to follow the same business model for their newest fund as well. The $100 million fund will go toward investing in more than 30 different companies in the Pacific Northwest region through funding of anywhere between $1 million and $3 million. The business plans to prioritize diversity and inclusion when investing as well. Furthermore, 1 in every 3 businesses that PSL has invested in have been founded by women, with 1 in 8 of them being founded by people of color.
In a statement released by PSL alongside the announcement of the newest venture fund, the company stated, “As we continue to see the pace of change in our world accelerate in the months and years ahead, we are ready to empower entrepreneurs in this mighty region as they take on new waves of opportunity with hustle and heart.”
About the Author
Tom Price is a writer focusing on entertainment and sports features. He has a degree from NYU in English with a minor in Creative Writing. He has been previously published for Washington Square News, Dignitas, CBR, and Numbers on the Boards.