RPM Ventures Raises $60 Million for Second Fund

RPM Ventures has closed its second fund with $60 million in capital commitments. The Ann Arbor, Mich.-based firm makes seed and early-stage investments in IT and physical sciences companies.

RPM Ventures, a seed and early-stage venture capital firm, today announced the successful close of its second venture capital fund, RPM Ventures II, L.P.

The firm reached its target goal of $60 million with commitments from a mix of foundations, fund of funds, large family offices, and partners from top venture funds. Building on the success of its first fund, RPM will continue to invest principally in information technology and physical sciences companies from across the country whose primary customer is the Midwest industrial base. It will also continue to target companies based on research at major universities in the Midwest.

“We believe that achieving our fund raising goals despite the economic climate is a result of the entrepreneurial approach RPM has taken in building a national firm that leverages the world-class resources in our own backyard,” said Marc Weiser, co-founder and managing director of RPM Ventures. “Our relationships with the universities and industries in the region, coupled with our connections with venture funds from around the nation, have allowed us to create a firm well positioned for success.”

“We are very pleased to be investors in RPM Ventures Fund II through our clients, the Venture Michigan Fund and the Michigan 21st Century Investment Fund,” said Kelly Williams, Managing Director and Co-Head of Credit Suisse’s Customized Fund Investment Group. “We were thrilled that RPM was able to reach its targeted fund size in a difficult fundraising environment. Marc Weiser and Tony Grover have demonstrated the ability to source attractive investment opportunities within RPM’s stated strategy.”

RPM has already made several investments out of the new fund, including Arbor Photonics (Ann Arbor, MI), next generation fiber lasers for manufacturing; BountyJobs (New York), a marketplace for contingency recruiting; Quantum Learning (Ann Arbor, MI), casual educational gaming for children; ShareThis (Mountain View, CA), content sharing and discovery; and TetraVitae Bioscience (Chicago), a developer of biobased chemicals and fuels.

The firm has invested in 23 companies across its two funds. Successful companies from the first fund include Applimation (acquired by Informatica), Entropic (NASDAQ: ENTR), R4 Global Services (acquired by VeriSign), as well as a number of privately held companies.

“As founders of our own startups, a seed and early-stage mentality is deeply embedded in our DNA,” RPM co-founder and managing director Tony Grover added. “This allows us to understand the challenges entrepreneurs face in building their companies. As a result, the companies we invest in are our top priority and we work closely with management on building customer relationships, recruiting key executives, and achieving important milestones.”

About RPM Ventures

RPM Ventures is a leading seed and early stage IT and physical sciences venture fund. Founded in 2000 and based in Ann Arbor, Michigan, the firm has a unique strategy as a national specialist and regional generalist, leveraging the strengths of the Midwest. As a regional generalist, RPM helps to create and invest in companies based on novel technologies developed within Midwest universities and research centers. As a national specialist, the firm invests in companies across the U.S. whose primary customer is the Midwest industrial base. With more than $75 million under management, RPM has invested in over 20 companies since inception. For more information, visit www.rpmvc.com.