Santa Monica-based Bonfire Ventures, which focuses on Seed stage investments in business-to-business software companies, has raised its second venture fund.

The investment vehicle, dubbed simply Bonfire Ventures II, was oversubscribed and closed at its $100 million hard cap, according to the company.

Bonfire’s second fund is up $37 million from its first fund in 2017. The Santa Monica venture firm added 28 companies with that vehicle, which it says have grown 800% in terms of collective revenue since joining its portfolio.

In addition to its core investment vehicle, Bonfire also has a Select Fund, which is targeted at Series B investments in more established startups. Its investments with the Select Fund include some better-known brands such as Santa Monica-based mobile restaurant ordering platform ChowNow Inc.

The firm’s latest fund is strongly modeled on its initial core investment vehicle.

“The game plan for this new fund is very similar to the game plan for the last fund,” the company wrote in a blog post, “a tight focus on leading Seed rounds in B2B Software (with) 25 to 30 companies over a three year investment period.”

The increased size of the fund will be used primarily for slightly larger initial investments, according to the company, as well as reserving a larger percentage of capital for follow-on investments in the future.

Bonfire says it has already added seven portfolio companies through the new fund, which it began investing with in January.

Bonfire’s focus on business-to-business software appears well-suited to the current market. Technology businesses, particularly those supporting must-have functions at companies, have thrived amid the Covid-19 pandemic.

Lockdowns and mandatory remote work have forced many businesses to adopt and rely on such technology systems more than ever, providing opportunities for startups in the space to rapidly scale their businesses.


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