Gateway Capital begins investing from new $25M fund

Gateway Capital Partners, a venture capital firm based in Milwaukee, has announced the first close for its second investment vehicle, Fund II, which carries a target size of $25 million. The firm, founded by Dana Guthrie, shared the announcement earlier this week with TechCrunch. While Gateway Capital confirmed the milestone, it declined to disclose the exact amount of capital secured for this first close. In the venture capital industry, a first close is a critical operational milestone, representing the point at which a fund has raised enough capital to officially begin its investment operations and start deploying money into startups. This allows the firm to begin writing checks before the entire target fund size is fully raised.

According to Guthrie, the firm initiated the fundraising process for Fund II in the middle of last year. The new fund is structured to be industry-agnostic, meaning it is not restricted to any single technology sector. However, Guthrie noted that the vehicle will maintain “a bias toward Midwest industries that are ripe for disruption.” This geographic and sectoral focus targets traditional industries in the Midwest region that can be modernized through technology, specifically highlighting sectors such as supply chain, logistics, and manufacturing artificial intelligence. By focusing on these areas, the firm seeks to back companies that address inefficiencies in established regional markets.

To execute this investment strategy, Gateway Capital has outlined specific operational parameters for Fund II:

• Average check size: The firm plans to write checks ranging between $500,000 and $600,000 per startup.
• Target portfolio size: Guthrie stated that the firm hopes to back at least 20 companies using the capital from this fund.

Gateway Capital was originally launched in 2020 by its founder, Dana Guthrie. During its founding year of 2020, the Milwaukee-based firm raised its inaugural vehicle, Fund I, which closed at $13 million. The progression to a $25 million target for Fund II represents a scale-up in the firm’s capital deployment capabilities. With the first close now completed, the firm can actively transition from fundraising to executing its investment strategy, targeting early-stage companies that fit its regional criteria.

Why it matters

The first close allows Gateway Capital to begin investment operations for its $25 million Fund II, which targets Midwest industries like supply chain, logistics, and manufacturing AI. This allows the firm to deploy capital to early-stage companies in regional sectors ripe for technological disruption.