Summit raises $2.2B across two megafunds, and pulls in ex-CEO of SoulCycle as newest investor – ProWellTech
While there has been a lot of bad news in the venture capital world in recent months as companies take into account changing macroeconomic conditions in the wake of COVID-19, this has not stopped some large investment companies from continuing to raise huge stacks of capital. and becoming more daring in their investment theses.
Case in point: Summit Partners, a venerable investor in the growth phase for startups and focused on ecosystems in North America and Europe, has collected two new megafunds. The company also announced that it has hired Melanie Whelan, who was previously CEO of SoulCycle, as the new CEO. He is currently EIR at the company.
Summit raised a $ 1 billion growth equity fund focused on North American startups and also raised a € 1.1 billion ($ 1.24 billion) fund focused on European startups. The company said the funds will go towards growing equity-type investments with a control size of around $ 10 million to $ 60 million for North American startups and a little larger for their European counterparts.
In recent months, the company has invested in companies such as the RiskIQ IT security platform, AppWay workflow automation launch, Podium interaction management service, Brooklinen consumer bedding brand and Immersive Labs computer skills platform, according to Crunchbase.
While Summit is traditionally known for its corporate investments, the company appears to want to double its consumption with Whelan’s intake. It will focus on “high growth rate services for consumers and technology,” according to the Summit.
Whelan had a long career in SoulCycle, joining the company as COO in 2012 and then winning the CEO title in 2015. Here, he led the market expansion and worked to prepare the fitness brand a little cult for public markets, with an IPO scheduled in mid-2018. That IPO ended up being pulled by the company, which had to face the headwinds of Peloton and other fitness startups, and Whelan left the CEO work towards the end of 2019 (which, given the almost complete shutdown of fitness studios in person, seems incredibly scheduled by accident). He officially joined the Summit as an EIR in February, just before the spread of the novel coronavirus slowed down much of the adventure world.
Today the company has 100 people spread across its myriad of offices and manages $ 21 billion.