We Started a New Kind of Venture Capital Firm.
We’re Four Years and Two Funds In. What Does it All Mean?

When we decided to start Tusk Venture Partners four years ago, most tech companies didn’t really care what government thought about them. To us, it was clear they should. Given our backgrounds and the number of new companies challenging traditional industries, it seemed obvious that someone should start a venture fund focused on investing in regulated markets.  We understand regulatory risk in a way that no other venture firm does, and we help our portfolio companies execute against it like no other venture firm can. That’s our superpower.
 
Now fast forward.  This week, we held the final close of our second fund, TVP II LP, with a fund size of $70 million, more than 2x the size of our first fund. This is a big milestone for us and we know we wouldn’t have been able to do it without the support of our investors, friends, portfolio companies and team. 
 
We learned a lot along the way and wanted to share what it took to get here, what we’ve learned and where we’re going.
 
It’s not always easy.  Raising our first fund was extremely difficult. Difficult things always are. We believed in ourselves and our thesis — but it wasn’t easy to get others to understand it. We spent months meeting with a countless number of potential investors. We heard “no” for every reason you could imagine. The response wasn’t exactly unexpected, but it was humbling to say the least.
 
If the fight to get here wasn’t so difficult, perhaps we wouldn’t appreciate where we are now, or have the same confidence about where we are going. With our latest fund, TVP II, we’ve started to lead rounds and take board seats at companies like Sunday, Boulder Care, and Alma.  We’re especially proud of the fact we’ve invested in female led companies at more than 10x the industry rate. And we continue to reinvest heavily in our talented and growing team.
 
We believe that to find long term success in this industry, you need to make a mark, and you need to make it early.  We knew that we needed to find conviction in our portfolio companies, follow our instincts, and take big swings.
 
To read more about our new fund, and what we’ve learned along the way about our thesis and Fund I performance, check out our full  Medium post and the exclusive story in  Fortune .
 
And thank you again for all your support over the last four years, we look forward to many more ahead!
Smarter Cars (podcast): Jordan Coleman, Kodiak Robotics
TVP predicts four things to look out for in the world of technology, politics, and regulation
  • Autonomous trucking. Autonomous cars are a political hot button. Trucks are not. Given the national shortage of truckers, and the lengths some truckers have to go to just to stay awake on the road, the need for a safer alternative is clear and generally accepted. That’s why states will follow the lead of Texas and Florida and allow autonomous truck testing on major highways as well as create dedicated lanes for autonomous truck delivery.

  • Consumers align their purchases with their values. Much like the organic food movement took off in the early 2000s, next year we’ll see another significant shift in changing consumer behaviors when it comes to the environment, sustainability, and other issues that align with their core values. Consumers have slowly shown they’ll pay a premium to support brands/companies that align with their beliefs. This year, I predict that company values will become the largest factor that consumers consider when making a purchase.

  • Niche venture funds become brand name firms. The venture capital market has long been ruled by ‘top tier’ VC firms that can raise very large funds and deploy capital across various stages of a companies’ lifecycle.  This year we will see newer venture models succeed and emerge as the investors are able to provide value to founders and provide strategic expertise for certain business and growth pains points where they are “experts.” Due to continued success of their underlying investment strategies, several micro-funds will transition from ‘emerging managers’ into ‘brand name’ firms.

  • Opioid addiction. Government will look to partner with the tech sector to figure out how to combat the crisis, since little else seems to be working. A host of new startups are using telemedicine to help opioid addicts prevent relapsing. Any sign of success will lead tech to opportunities to partner with state and local governments, Medicare and Medicaid, health insurers and others.
The “ pure ” marathon. The guide schooldoggy dropouts .   Unionizing with the CEO’s blessing.  National Review agrees with us on home sharing. Poland’s abortion  dream team .  Retro logos are secret weapons. Dating in  Silicon Valley sounds hellish. What is this  made up island ? The  dominance of the TI-83. Ro’s CEO explains  DTC Metrics . In the van with the ‘juicers’ who round up and charge scooters .