Steve Case’s Revolution Targets $500M for Fourth Growth Fund
Washington, D.C.-based venture firm Revolution, founded by AOL co-founder Steve Case and former AOL executive Ted Leonsis, is raising $500 million for its fourth growth fund, according to a recent SEC filing. The firm declined to comment on the fundraising effort.
A Strategic Approach to Venture Investing
Revolution’s latest fund comes more than four years after its third growth fund closed with $525 million in commitments—a slower pace than the typical two-year cycle seen across the venture industry. This measured approach aligns with the firm’s mission to invest in underserved startup ecosystems outside traditional tech hubs.
Key Investment Themes:
- “Rise of the Rest” Cities: Revolution focuses on regions with lower costs of living and untapped talent pools, where capital stretches further.
- Multi-Fund Strategy: The firm also manages seed-stage funds, including its $150 million Rise of the Rest Seed Fund II, closed in 2019.
Recent Successes Fuel Investor Confidence
Revolution’s portfolio has seen notable exits and high-growth performers:
- DraftKings: The Boston-based sports betting platform went public via a merger, debuting on Nasdaq.
- BigCommerce: The Austin e-commerce SaaS company (Series C investor) now boasts a $4.2B market cap post-IPO.
- Orchard: Revolution led a $69M Series C for this real estate tech platform in September 2020.
Other standout investments include:
- TemperPack (sustainable packaging, $31M Series C)
- Sweetgreen (fast-casual dining, $150M 2019 funding round)
Steve Case on Post-Pandemic Startup Trends
In a recent interview, Case shared insights on:
Remote Work’s Impact on Tech Hubs
“Some who left Silicon Valley temporarily may stay, but I don’t expect a mass exodus. However, this shift could accelerate growth in ‘Rise of the Rest’ cities.”
Diversity Gaps in Venture Funding
Case expressed concern over data showing:
- 75% of VC dollars flow to just three states
- <10% to female founders, despite representing half the population
- % to Black founders, versus 14% U.S. demographic share
“Most VCs recognize the problem but lack networks in diverse communities. Expanding these connections is critical.”
Political Ties and Leadership Shifts
Revolution executive Ron Klain—former Biden chief of staff—will rejoin the White House in 2021. Case praised Klain’s ability to “process complex issues and balance competing priorities.”
As Revolution prepares its fourth fund, its unique geographic focus and recent wins position it as a key player in reshaping venture capital’s future landscape.
