Pioneer Square Labs Managing Directors Mike Galgon; Julie Sandler; Greg Gottesman; and Geoff Entress. (Photo via PSL)
The Pacific Northwest tech startup ecosystem just got a big cash infusion in the form of a new venture capital investment arm launched by Pioneer Square Labs.
The Seattle “startup studio” today revealed a new $80 million venture fund, marking an expansion of its unique company-building model and a needed injection of capital now available to local entrepreneurs.
GeekWire first reported on the fund in December. Now the managing directors at Pioneer Square Labs are revealing more details about why they launched the fund and what types of companies will receive investment.
Created in 2015, PSL uses a unique innovation model to rapidly test and validate new ideas before recruiting an executive team to build out a spinoff company. PSL Studio has helped launch several startups in the past two years, including companies like AdLightning and Boundless. The studio itself has raised $27.5 million to date, including a $15 million round in January, from more than a dozen U.S. venture capital funds and 50-plus angel investors.
The new venture fund, called PSL Ventures, is a separate entity from Studio. It will allow PSL to invest in startups that they like, but don’t necessarily fit into the Studio model. It’s part of a broader goal to create a “platform” for entrepreneurs, said Greg Gottesman, a managing director at PSL.
“If you are an elite entrepreneur in the Pacific Northwest, we want it to be irresponsible for you not to come and talk to us,” Gottesman said, borrowing a line from Amazon founder Jeff Bezos.
PSL Ventures will invest $500,000 to $2 million in early-stage tech companies — pre-seed, seed, and Series A investment rounds — with a focus on Pacific Northwest-based startups …read more