Rally Ventures

Rally Ventures targets early-stage investments in business technology, specifically in sectors such as artificial intelligence (AI), cybersecurity, fintech, and SaaS+. The firm primarily invests at the pre-seed, seed, seed+, and Series A stages, with initial check sizes ranging from $500,000 to $8 million. Their investment strategy emphasizes practical applications of technology that can create significant market impact and value.

The firm is particularly focused on the cybersecurity landscape and the SaaS+ model, which enhances traditional SaaS offerings. Rally Ventures seeks to partner with founders who demonstrate a strong vision and the ability to execute their business plans effectively. They prioritize companies that leverage technology to solve real-world problems and deliver measurable outcomes.

Geographically, Rally Ventures concentrates its efforts in the United States, allowing them to tap into a rich pool of innovative startups. Their investment thesis is designed to support companies that are positioned for growth in high-potential markets, ensuring that they can deliver substantial returns to their investors.

Rally Ventures has a diverse portfolio of 76 companies, including several notable firms that exemplify their investment focus:

• 401GO: A fintech platform simplifying 401(k) plan administration.
• Abstract Security: Centralizes security analytics management with AI assistance.
• Arctic Wolf: A leader in security operations for managing cyber risk.
• Braze: A mobile marketing automation platform for real-time customer engagement, which went public on NASDAQ under the ticker BRZE.
• Bugcrowd: A crowd-sourced security platform that helps organizations manage security testing programs.
• Carbon Black: An IPO company acquired by VMware.
• Coupa: An IPO company specializing in business spend management.
• UiPath: An IPO company known for its robotic process automation solutions.
• SportsEngine: Acquired by NBC Sports, this platform supports youth sports management.
• Twistlock: Acquired by Palo Alto Networks, it specializes in cloud-native security.
• Verodin: Acquired by FireEye, it focuses on security operations.
• Total Expert: A marketing and customer engagement platform tailored for financial services.

Rally Ventures continues to expand its portfolio with recent investments in companies like Otto Sport AI, Abstract Security, and Ankored, demonstrating their commitment to supporting innovative startups in the business technology sector.

Charles Beeler: Co-founder of Rally Ventures since 2012, Charles has extensive experience in venture capital and technology. He has played a pivotal role in shaping the firm's investment strategy and building its operator network.

Jeff Hinck: Co-founder and Managing Director, Jeff has a strong background in technology investments and has been instrumental in driving the firm's growth and portfolio development.

Justin Kaufenberg: Managing Director, Justin joined Rally Ventures in late 2019 after co-founding SportsEngine, which was acquired by NBC Sports. His expertise lies in scaling technology companies and identifying high-potential investments.

Ben Fried: Venture Partner, Ben previously served as the CIO at Google. He focuses on engineering leadership, cybersecurity, and AI/ML investments, bringing a wealth of technical knowledge to the firm.

Zenas Hutcheson: Venture Partner, Zenas has a strong background in technology and venture capital, contributing to the firm's investment decisions and portfolio management.

Michael Jennings: Venture Partner, Michael brings extensive experience in technology investments and operational support, enhancing the firm's ability to assist portfolio companies.

To pitch Rally Ventures, founders should submit their proposals through the firm's website at rallyventures.com. It is essential to include a well-structured pitch deck that outlines the business model, market opportunity, competitive landscape, and team qualifications. The firm prefers concise presentations that focus on key metrics and milestones.

Rally Ventures values warm introductions, so leveraging connections within their network can significantly improve the chances of receiving a response. Founders can expect a response time of approximately two to four weeks after submission, depending on the volume of inquiries.

Additionally, it is advisable to highlight any traction or early success in the pitch, as this can help demonstrate the startup's potential for growth and align with Rally Ventures' focus on measurable returns.

In December 2023, Rally Ventures announced the close of Fund V, raising $240 million, which brings their total assets under management to over $1 billion. This fund was oversubscribed, reflecting strong investor confidence in the firm's strategy and performance.

Recently, Rally Ventures has been active in the investment space, with notable investments in companies such as Otto Sport AI, which secured a $16.5 million seed round, and Abstract Security. The firm continues to engage with industry trends through blog posts discussing cybersecurity strategies for growing companies.

Rally Ventures has also celebrated significant exits, including the IPOs of Braze, UiPath, and Coupa, as well as acquisitions of Carbon Black by VMware and Twistlock by Palo Alto Networks. These successful outcomes highlight the firm's ability to identify and support high-potential startups.