Jackson Square Ventures recently closed its third fund with $193 million; here’s how it plans to invest it

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Jackson Square Ventures (JSV), is an eight-year-old, San Francisco-based early-step enterprise firm.

It gets its name from the neighbourhood in San Francisco where it is headquartered.

It has concluded its third fund with $193 million in capital commitments.

This is a sizable step up from its initial two funds, which had both turned up roughly $120 million from the firm’s limited partners.

More About Jackson Square Ventures 

The firm, whose partners originally formed out of Sigma Partners, is U.S.-based software-as-a-service that funds marketplace organisations.

They also fund outliers occasionally, if it can discover a way to justify the investment. 

Such was the problem with Cornershop, a Latin American online grocery delivery help.

The Cornershop Story And JSV’s Business Model

SV co-founder Greg Gretsch first got to know about Cornershop when one of the company’s co-founders, Oskar Hjertonsson, moved in opposite the street from him.

Cornershop moved on to raise about $32 million altogether before selling a bulk stake in its business last week to Uber for undisclosed terms.

Gretsch states that Hjertonsson and his co-founders are precisely the kind of founders that JSV seeks out. 

He tells that more broadly, JSV eludes companies in hyped-up spaces, adhering instead to what it knows.

As for how much the firm sets to work, Gretsch states that its sweet spot is Series A sales.

Moreover, JSV manages to write first checks of between $4 million and $6 million, favouring a more concentrated portfolio to increasing its bets.

When it does pull the trigger, it is typically to finance a company that is already witnessing a million dollars in yearly recurring revenue.

Though he mentions that marketplaces can be “pre-revenue” as long as they can show friction on both the supply and demand side. 

For example, JSV started the Series A round last year in LA-based CREXi, a four-year-old industrial real estate marketplace and technology program for buyers, brokers, agents and tenants. 

At that time, it had no income, but it could show demand on the part of brokers needing to list properties on its platform.

Gretsch says that generally speaking, JSV seems to own 15 to 20% of a company.

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