Growth Street Partners racks up $130m for second fund

Growth Street Partners has closed its second fund at $130 million.

Growth Street Partners has closed its second fund at $130 million. Growth Street Partners provides early growth capital to B2B SaaS and technology-enabled services companies in the the U.S. and Canada.

PRESS RELEASE

SAN FRANCISCO, Jan. 19, 2021 /PRNewswire/ — Growth Street Partners, a San Francisco-based early growth capital firm, today announced the closing of its second fund, Growth Street Partners II, LP (“Fund II”). All key existing Fund I investors returned, and Fund II added a select group of prominent new institutions and family offices. With Fund II’s final closing, the firm now has over $200 million of assets under management. Fund II will make $3-12 million meaningful minority investments to accelerate the growth of $1-5 million annual recurring revenue (“ARR”) companies.

Founded by Steve Wolfe and Nate Grossman, Growth Street provides early growth capital to vertically-focused, rapidly growing B2B SaaS and technology-enabled services companies located in underserved markets across the U.S. and Canada. The firm focuses on partnering with founders from industry who lived the problem their business is solving (i.e., founder-market fit). An investment from Growth Street enables an entrepreneur to accelerate growth without losing control. In aggregate, Growth Street’s current portfolio represents nearly $75M of ARR, growing >50% year-over-year with >90% gross revenue retention and >115% net revenue retention – all of which improved in 2020 despite the pandemic.

The Fund II capital raise allows Growth Street to increase the support and expertise it offers its portfolio companies. In the last eighteen months, Growth Street closed its second fund, hired and promoted several key team members, partnered with two rapidly growing women-owned B2B SaaS businesses, and helped the founders of Visual Lease and Pear Deck close transformational transactions. The firm’s goal is to enable the best B2B software and technology-enabled services entrepreneurs to grow faster with less risk.

“Deciding to partner with Growth Street was one of the most important business decisions I made as a founder, and it was also easily one of the best decisions I made. Growth Street gave us the scaling expertise, confidence, and capital to accelerate our growth,” explained Riley Eynon-Lynch, the CEO and Co-Founder of Pear Deck. In November, Pear Deck was acquired by GoGuardian.

Growth Street Partners
Growth Street Partners provides early growth capital to rapidly growing B2B SaaS and technology-enabled services companies located in underserved markets across the U.S. and Canada. The firm partners with founders who have personally lived through the problems their businesses solve. Growth Street investments include Pear Deck, ChildcareCRM, Visual Lease, Hotel Effectiveness, Suralink, HR Acuity, and BoardBookit, as well as the add-on acquisitions of Just Fill Out and LobbyLights at ChildcareCRM and Hotel Effectiveness, respectively. In addition, Growth Street successfully completed the recapitalization of Visual Lease and sale of Pear Deck. The firm has over $200 million of assets under management. If you are a founder from industry looking to scale your business without losing control or simply interested in more information, please visit www.growthstreetpartners.com.