Gateway Capital Partners, a Milwaukee-based venture firm led by Dana Guthrie, has officially begun investing from its second fund after reaching a first close earlier this week. While the exact amount raised in this initial round was not disclosed, the firm confirmed that Fund II is targeting $25 million in total commitments.
Fund Operations Begin
The first close allows Gateway Capital to immediately deploy capital into promising startups. The firm began fundraising for Fund II in mid-2023, indicating a relatively swift fundraising cycle in a competitive market. This is noteworthy because venture capital fundraising can take much longer, especially for smaller, regional firms.
Investment Strategy: Midwest Focus
Gateway Capital’s approach is industry-agnostic but prioritizes opportunities within the Midwest. Guthrie stated that the fund will focus on sectors primed for disruption, including supply chain, logistics, and artificial intelligence applications within manufacturing. The firm plans to invest between $500,000 and $600,000 per company, with a goal of backing at least 20 businesses from Fund II.
Building on Early Success
Gateway Capital launched in 2020 and raised its inaugural $13 million Fund I the same year. This successful track record likely contributed to investor confidence in Fund II. The Midwest venture landscape is becoming increasingly active, with firms like Gateway Capital playing a key role in supporting regional innovation and economic growth.
Gateway Capital’s new fund underscores the growing momentum of venture investment in the Midwest, where untapped potential in traditional industries is attracting capital and driving technological upgrades. This signals a shift away from the coasts and toward a more diversified venture ecosystem.
