WASHINGTON — Capitals and Wizards owner Ted Leonsis, AOL co-founder Steve Case and venture capitalist Donn Davis don’t have anything against Silicon Valley; they just don’t care to invest in it.
Their venture capital fund Revolution Growth LLC has raised an additional $525 million specifically to invest in startups outside of the Silicon Valley area, in what Case often refers to as “the rise of the rest.”
It is the third time Revolution Growth has loaded up on capital, raising more than $1.1 billion since 2011.
As in the past, Revolution Growth will be “highly selective,” making three or four investments a year, typically between $25 million and $50 million in each investment. The three entrepreneurs like to focus on companies in health care, education, transportation, energy, financial services, food and government services.
“There is something inherently American about coming up with an idea, pulling together a team and raising capital to go out and stat a company,” Leonsis said in a statement. “Business building is not easy, but Revolution has the expertise to help entrepreneurs execute on their ideas.”
Revolution Growth’s past investments have included CustomInk, sweetgreen, Zipcar, Cava, and HelloWallet.
