
Red Sea Ventures
Description
Red Sea Ventures is a New York City-based venture capital firm renowned for its early-stage investments, primarily targeting Seed and Series A rounds. Co-founded by Justin Yoshimura and Michael D. Duda, the firm has established itself as a significant player in the consumer technology and brand space. Their investment philosophy centers on identifying and supporting disruptive companies that are poised to redefine their respective markets, often leveraging strong brand narratives and innovative business models.
The firm's strategic focus extends across various sectors, with a notable track record in direct-to-consumer (DTC) brands, e-commerce, and consumer-facing technology. Red Sea Ventures aims to be more than just a capital provider, offering operational expertise, strategic guidance, and access to a robust network to help portfolio companies scale effectively. Their portfolio boasts several well-known successes, including early investments in companies like Allbirds, Casper, and Warby Parker, underscoring their ability to spot high-growth potential.
Red Sea Ventures has progressively grown its capital base, enabling it to support a broader range of early-stage opportunities. The firm successfully raised its first fund, Red Sea Ventures I, amounting to $10 million. This was followed by Red Sea Ventures II, which closed at $50 million, and most recently, Red Sea Ventures III, securing $75 million. These increasing fund sizes reflect their expanding capacity and commitment to the early-stage ecosystem. Based on their fund sizes and investment stage, Red Sea Ventures typically deploys initial checks ranging from $500,000 to $5,000,000, allowing them to participate meaningfully in both seed-stage rounds and lead or co-lead early Series A financings.
The firm seeks out ambitious founders with compelling visions and a clear path to market disruption. They are known for their hands-on approach, working closely with entrepreneurs to navigate the challenges of rapid growth. Their preference for companies with strong product-market fit and a scalable business model positions them as a valuable partner for startups aiming to build enduring consumer brands and technology platforms.
Investor Profile
Red Sea Ventures has backed more than 99 startups, with 1 new investments in the last 12 months alone. The firm has led 10 rounds, about 10% of its total and boasts 20 exits across its portfolio.
Investment Focus Highlights
- Concentrates on Seed, Series A, Series B rounds (top funding stages).
- Majority of deals are located in United States, United Kingdom, Canada.
- Strong thematic focus on Software, Internet, Health Care.
- Typical check size: $500K – $5M.
Stage Focus
- Seed (41%)
- Series A (30%)
- Series B (7%)
- Series Unknown (6%)
- Pre Seed (6%)
- Convertible Note (4%)
- Series C (2%)
- Series E (1%)
- Series D (1%)
- Debt Financing (1%)
Country Focus
- United States (91%)
- United Kingdom (6%)
- Canada (1%)
- Spain (1%)
Industry Focus
- Software
- Internet
- Health Care
- E-commerce
- Information Technology
- Financial Services
- Fintech
- Apps
- Finance
- Productivity Tools
Frequently Asked Questions
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