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Distributed Ventures is a prominent venture capital firm founded with a mission to innovate within the risk ecosystem, specifically at the intersection of health, insurance, and wealth. Established by a team of experts with extensive backgrounds in the risk management sector, the firm has quickly positioned itself as a key player in early-stage investments. With a fund size of $100 million, which closed in July 2023, Distributed Ventures is actively deploying capital to support startups that are poised to disrupt traditional industries. The firm operates out of Chicago and New York, leveraging its strategic location to tap into a vast network of insurers and brokerages. This unique positioning not only allows them to provide capital but also facilitates access to potential customers and partners from the outset, enhancing the growth trajectory of their portfolio companies. The leadership team, including Shawn Ellis, Adam Blumencranz, and Michael Peri, brings a wealth of experience from their previous roles at NFP Ventures, ensuring a deep understanding of the sectors they invest in. Distributed Ventures has garnered a reputation for its strategic approach, focusing on sectors where it can add significant value through its extensive industry knowledge and relationships.
Distributed Ventures primarily invests in Seed and Series A funding rounds, targeting check sizes between $1 million and $5 million. The firm aims to acquire a 15-20% ownership stake in its portfolio companies, emphasizing sectors where it can leverage its extensive network and industry expertise to drive growth. The firm focuses on three main sectors: healthcare, fintech, and insurtech, seeking innovative startups that are addressing critical challenges within these industries. By concentrating on the risk ecosystem, Distributed Ventures is able to identify opportunities that not only promise financial returns but also contribute to meaningful advancements in health, insurance, and wealth management. The firm looks for founders who are not only passionate about their solutions but also possess a deep understanding of their respective markets. This strategic focus allows Distributed Ventures to provide more than just capital; it offers portfolio companies the opportunity to pilot their solutions in real-world settings, thereby enhancing their chances of success.
Distributed Ventures boasts a diverse portfolio of 23 companies, showcasing its commitment to investing in innovative solutions across healthcare, fintech, and insurtech. Notable investments include **401kplans.com**, a digital marketplace for 401(k) plans that assists financial advisors; **Armadillo**, a subscription-based home warranty provider; and **Ascend**, which automates insurance billing and payments. Other significant portfolio companies include **CVR**, a benefits administrator for federal contractors; **CoverTree**, which focuses on digital distribution and automated underwriting in the insurtech space; and **Cylinder**, a virtual care platform for digestive health. The firm has also invested in **Focal**, an AI tool for financial advisors, and **Honeycomb**, a real estate insurance company. With a strategic focus on the intersection of health, insurance, and wealth, Distributed Ventures has successfully nurtured companies like **Indio**, which simplifies the insurance application process, and **Wellth**, which is dedicated to chronic disease adherence. The firm has achieved notable exits, including three acquisitions and one unicorn, demonstrating its effectiveness in identifying and supporting high-potential startups.
Shawn Ellis - Co-founder and Managing Partner, previously led NFP Ventures and has extensive experience in the insurance and risk management sectors.
Adam Blumencranz - Co-founder and Partner, brings a wealth of knowledge in venture capital and strategic investments.
Michael Peri - Co-founder and Partner, specializes in identifying high-potential startups within the risk ecosystem.
To pitch Distributed Ventures, founders should visit their contact page at distributedvc.com/contact. The firm welcomes pitches that clearly outline the business model, market opportunity, and how the startup addresses challenges in the health, insurance, and wealth sectors. While warm introductions are beneficial, cold applications are also accepted.
In July 2023, Distributed Ventures successfully closed a $100 million fund aimed at investing in innovative companies within the insurtech, fintech, and healthtech sectors. This fund is expected to be active through 2025, allowing the firm to continue its strategic investments in early-stage companies. The firm has also been recognized for its unique approach to leveraging relationships with insurers and brokerages, providing portfolio companies with direct access to potential customers and commercial pilots.
Distributed Ventures primarily invests in Seed and Series A funding rounds. This focus allows them to support early-stage companies that are poised for growth and innovation in the health, insurance, and wealth sectors.
Founders interested in pitching Distributed Ventures can do so through their contact page at distributedvc.com/contact. It is advisable to provide a clear overview of your business model, market potential, and how your solution addresses specific challenges in the risk ecosystem.
Distributed Ventures focuses on three main sectors: healthcare, fintech, and insurtech. They seek innovative startups that are addressing critical challenges within these industries, leveraging their expertise and network to drive growth.
The firm typically invests between $1 million and $5 million in its portfolio companies. This range allows them to acquire a meaningful ownership stake while providing sufficient capital to support growth initiatives.
Distributed Ventures primarily invests in companies based in the United States. Their strategic focus on the U.S. market allows them to leverage local industry relationships and insights.
In addition to capital, Distributed Ventures offers strategic access to potential customers and partners through its extensive network of insurers and brokerages. This unique positioning enables portfolio companies to pilot their solutions in real-world settings, enhancing their growth potential.
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