M13’s Fund III: $400M for Seed to Series B
Learn about M13’s third fund for founders building the future of work, commerce, health, and money.
By M13 Team
March 7, 2022
Joseph Seif for M13
Today we’re announcing our $400 million fund to build on the performance of our two top-performing funds. Thanks to the overwhelming demand from our supportive LP base, our third fund exceeds our $275 million target and enables us to invest in early-stage founding teams building technology that powers the future of work, commerce, health, and money.
That we get to wake up every day thinking about and investing in the future is a genuine privilege. But our true passion is in supporting you, our founding teams, with our Propulsion Platform. Given that all of us got our start as operators, we were once in your shoes, wishing for what we can share with you today: vertically focused experts, tech tools, and a network to accelerate your growth and success.
Investing in tomorrow’s tech
Like you, M13 aims to build a brighter and sustainable future. We invested early in 15 portfolio companies that are now each valued at over $1 billion, including Ring, Cue, Daily Harvest, FabFitFun, ClassPass, Matterport, Transfix, and Capsule. Other investments made early from our second fund are showing similar trajectories.
We’re deploying our third fund into areas we’ve long been tracking: the future of consumer behavior in work, commerce, health, and money. As early backers of DTC businesses, we’re now increasingly focused on horizontal technology layers including Web3, which we define as blockchain-based applications governed through tokens. This infrastructure layer powers brands, enables creators to connect with more people, and helps companies deliver new experiences to customers. At heart, we care about what the consumer cares about.
1 operating partner per investing partner
Our investment process is straightforward. We lead deals and write up to $15 million Seed to Series B checks. Our companies then typically raise follow-on investment from leading firms.
Equally impactful to you is our experience as founders and operators. We know because we did the math: early access to operating experience contributes to better outcomes faster. And that leads to M13’s key differentiation: our Propulsion Platform, which we purposefully designed with one full-time vertically focused operating partner for every investing partner.
Before joining M13, our full-time partners weren’t VCs; they first spent decades in the trenches as founders and operators. They each bring an incredible wealth of experience from building an aggregate market value of more than $23 billion in SaaS (DigitalOcean), consumer (Virgin brands like Virgin Galactic and Virgin Orbit, Glamsquad), marketplaces (GOAT, Gilt), and entrepreneurship (Techstars). Our team members are equally hands-on with relevant experience in brand, content, community, data, operations, performance marketing, and talent (Airbnb, Bonobos, Clocktower, LinkedIn, ReturnPath, Signalfire, Target, Unilever).
By design, founders like you are at the center of our Propulsion Platform, enabling us to be anticipatory and ready to help you reach near- and long-term goals, from scaling your business and leadership to preparing for your next round.
Our Propulsion Platform organizes our partners around you, enabling us to contribute what you need when you need it. Your investment lead keeps our partners up to date on what you’re doing and where you want to go, reducing onboarding time. Beyond each partner are their teams and networks that have joined M13 specifically to help accelerate your growth and be part of some of the most exciting entrepreneurial journeys today.
Each founder's experience is bespoke, but our impact is consistent. We believe we’re better investors because we’re operators and better operators because we’re investors. Our founding teams agree—M13 regularly measures how likely a founder would recommend M13, and our NPS score is 91 out of 100.
Culture over geography
We originated in Los Angeles and have long been part of LA’s economic engine. We began investing in LA entrepreneurs when we (Carter and Courtney Reum, Karl Alomar) were founders ourselves and when Latif Peracha led investments for Sir Richard Branson. Anna Barber ran Techstars LA for years while also distinguishing herself as a prolific angel investor of underrepresented founders.
Supporting the early journeys of today’s leading decision makers in digital media, entertainment, gaming, wellness, and the creator economy means M13 gets unparalleled access to ideas, trends—and yes, influencers—that help inform what, how, and with whom you build.
While we are headquartered in Los Angeles, we also live, work, and interact daily in an increasingly decentralized world. From the start, M13 has embraced the future of work, and our 32 distributed colleagues live and work in New York, Miami, Las Vegas, Boston, and Chicago—resulting in a robust exchange of ideas and diverse perspectives of what the future holds. We look forward to getting to know more of you as we host dinners, happy hours, and Future Perfect events across the U.S.
When we asked our partners what we’re most proud of, it was resoundingly this: the people who have joined our journey.
Growth and learning are intentional parts of our culture, and collaboration comes in many flavors. Our founding teams have benefited from customer introductions by our investors and candid group sessions with some of the world’s most respected executive coaches; more than ever, we see the importance of supporting your physical and mental well-being. Other partners help us nurture talent and foster an inclusive culture; in particular, LifeLabs Learning partners with us on our annual DEI workshops and our Human Capital content series.
Money gets us started, but people make enduring, meaningful companies. The entire M13 community is passionate about working with you and your team, and we’ll continue to expand our organization to support our growing portfolio. It’s our founders, talent, investors, and community that ensure that we’re not building alone but together and meaningfully. We truly believe in the engine of business to create dignified work and purpose that ensures a future beyond us.
If our purpose and values resonate with yours, please reach out. We can’t wait to build with you.