Mercato Partners has solidified its position in the venture capital landscape through strategic decisions and the cultivation of exceptional talent. Key among these decisions was the recruitment of Joe Kaiser and Ryan Sanders between 2015 and 2016. These dynamic investors, joining from Escalate Capital and Vivint Solar respectively, brought fresh perspectives and leadership to Mercato Partners, complementing the firm’s earlier successes, such as their 2014 investment in Galileo Financial Technology. This strategic foresight quickly proved fruitful, with both Kaiser and Sanders being appointed Managing Directors by late 2021.
Since their promotion to MD, Sanders and Kaiser have been instrumental in shaping the trajectory of Mercato Partners. Their leadership was pivotal in the successful fundraise of the $400M Traverse Fund IV. Furthermore, they have spearheaded nearly all of Mercato Partners’ growth investments over the last four years, laying a robust foundation for the fund’s continued prosperity in the years ahead. Their combined achievements were recently highlighted by Business Insider, recognizing their significant contribution to the expanding influence of venture capital in the Mountain West region.
While acknowledged as two of Business Insider’s “23 Most Important VCs in the Rockies,” Kaiser and Sanders’ vision extends beyond regional boundaries. In 2022, they implemented a firm-wide investment strategy shift at Mercato Partners, broadening the focus to encompass undercapitalized and underrepresented areas throughout the United States, rather than solely concentrating on the Mountain West. This strategic pivot has resulted in 80% of Mercato Partners’ investments being directed outside of Utah. This nationwide approach is driven by the core belief at Mercato Partners that promising startups should not be geographically limited to coastal hubs to succeed.
Embracing this distributed investment philosophy, Kaiser and Sanders have adopted a hands-on, nationwide travel strategy. In the first 20 weeks of 2024 alone, they visited 46 cities – in addition to an international trip to connect with limited partners – to engage with founders and fellow investors directly in their local ecosystems. This intensive travel schedule reflects their dedication and is set to continue into the latter half of the year, anchored by Mercato Partners’ first annual meeting to be held outside of their home state.
This new approach to the annual meeting, choosing destination locations, reflects Kaiser and Sanders’ commitment to reinvesting in and showcasing the diverse cities and towns that contribute significantly to Mercato Partners’ portfolio. Last year’s annual meeting in St. George, UT, for example, shone a spotlight on Vasion, a key portfolio company based there. This year, Chicago, a city identified as a significant source of undercapitalized opportunities and home to three current Mercato Partners portfolio companies, will host limited partners and portfolio executives.
Although still in the early stages of their roles as Managing Directors, Joe Kaiser and Ryan Sanders are demonstrably impacting Mercato Partners. The recognition from Business Insider serves as an early indicator of the continued success anticipated for both individuals. The firm is enthusiastic about the sustained and significant advancements they are poised to bring to Mercato Partners, reinforcing its commitment to fostering growth and innovation across diverse geographies.
