Even with large, established venture firms and celebrity angel investors chasing hot deals at sky-high valuations, Kirsten Green sees an opportunity for a brand new venture fund.
Green said today that her firm, Forerunner Ventures, has raised $40 million to invest in digital commerce, a market she sizes at $200 billion and growing. Based in San Francisco, Forerunner plans to invest in 25 companies, making initial investments from $250,000 to $500,000, leaving enough capital to selectively invest in follow-on rounds.
This is a market that Green knows. She was previously an equity analyst at Montgomery Securities (later Banc of America Securities), covering specialty retail, and then became an investor at the firm with a focus on that market.
Prior to raising this fund, Green invested as an angel in e-commerce startups, including beauty supply company Birchbox, online clothing store Bonobos, mobile booking site Hotel Tonight and Web eyeglass provider Warby Parker.
With more institutional money, Green said she hopes that “people can start to recognize us for bringing a certain perspective, a certain network and having strength in some areas.”