Act One Ventures, a Los Angeles, CA-based early stage venture capital firm, closed its third fund, at $73m.
Fund III will allow Act One to continue to invest in business software companies at the Seed stage, specifically those in vertical SaaS, fintech, compliance, and ecommerce infrastructure. The firm led four of the five deals made from the new fund so far, with initial checks ranging from $1m to $2m.
The third fund brought its total assets under management (AUM) to $148m, spread across three funds and more than 10 special purpose vehicles (SPVs). The firm plans to reserve significant capital in Fund III for follow-on financing of portfolio companies.
Led by General Partners Alejandro Guerrero and Michael Silton, who began working together in 2013 at the UCLA Venture Fund, Act One has invested in a total of 47 companies since inception in 2016, with “founder-market fit” as the core element to their investing philosophy.
The firm also created the Diversity Rider, a platform dedicated to increasing opportunities and access to wealth in venture capital and startups for underrepresented communities such as Black, LatinX, female, LGBTQ+, disabled, and others. While Act One does not have a diversity mandate, over 70% of its portfolio companies are led by women and people of color.