Hyde Park Venture Partners (HPVP), a Chicago-based early-stage venture capital firm, has announced the close of its Fund IV at $98 million. This new fund brings HPVP’s total assets under management to approximately $320 million, further solidifying its commitment to investing in promising startups across the Midwest and Toronto. This significant capital raise underscores the growing recognition of the Midwest as a burgeoning hub for tech innovation.
HPVP’s Investment Strategy and Focus
Led by managing partners Greg Barnes and Guy Turner, along with partner Allison Lechnir, HPVP has a 12-year track record of identifying and supporting high-potential founders. The firm primarily focuses on seed-stage investments, with average check sizes ranging from $500,000 to $4 million. Fund IV is expected to be deployed across 20 to 22 companies.
HPVP differentiates itself through its deep connections within the Midwest startup ecosystem, claiming visibility into over 90% of mid-continent startups. This extensive network enables the firm to source promising deals and provide valuable support to its portfolio companies. Furthermore, HPVP boasts a dedicated talent partner, Jim Conti, a unique asset for a firm of its size. Conti focuses on attracting top talent to portfolio companies and fostering strong regional connections.
Midwest’s Rising Prominence in the Tech Scene
The Midwest is experiencing a surge in startup activity, driven by factors such as strong universities, robust R&D funding, and a growing talent pool. HPVP’s successful fundraising reflects this positive trend and reinforces the region’s attractiveness for venture capital investment.
Lower valuations compared to coastal regions, coupled with the increasing appeal of Midwest living, further contribute to the region’s growing momentum. The pandemic accelerated this trend, prompting many individuals to relocate to the Midwest, enriching the local talent pool. This influx of skilled professionals, particularly product managers transitioning to entrepreneurship, has significantly elevated the quality of founders in the region.
HPVP’s Portfolio and Successful Exits
HPVP has a strong track record of successful investments, with portfolio companies collectively raising over $1 billion in follow-on funding. Notable portfolio companies include ShipBob, FourKites, G2, LogicGate, and Dentologie. ShipBob, a logistics company in which HPVP led the Series A, recently announced its intention to explore an initial public offering.
The firm also boasts successful exits, including VNDLY, a workforce management startup acquired by Workday, and Tock, a restaurant tech startup acquired by Squarespace. These successful outcomes further validate HPVP’s investment strategy and its ability to identify and nurture high-growth companies.
Fund IV’s Limited Partner Base
Fund IV attracted a diverse group of limited partners, including approximately 25% institutional investors, 35% family offices, and the remaining 40% ultra-high-net-worth individuals. New institutional partners, such as NVNG and Cintrifuse Capital, joined existing backers like the Illinois Growth and Innovation Fund, RK Mellon Foundation, and Renaissance Venture Capital. This strong support from a diverse investor base underscores confidence in HPVP’s investment approach and the potential of the Midwest startup ecosystem. Diffit, leveraging generative AI for customized lesson plans, and CivCheck, streamlining building permitting processes, are the first two investments from this new fund. HPVP’s successful fundraise and continued commitment to the Midwest solidify its position as a key player in the region’s evolving tech landscape.
