Pack Ventures is an emerging venture capital fund that focuses on investing in startups that have connections to the University of Washington. The fund was launched two years ago with a goal of investing in early-stage startups spun out of the university or led by alumni, following a similar playbook to funds tied to other large universities. Pack initially raised $5 million from over 80 investors and invested in 29 companies across life sciences, software, and healthcare sectors. Ken Horenstein, founder and general partner at Pack, described the initial fund as a proof-of-concept, and the firm is now looking to raise $30 million for its second fund.
Pack Ventures recently signed a memorandum of understanding with the University of Washington to be its preferred venture partner, reflecting a successful relationship with the university and the broader entrepreneurial ecosystem in Seattle. The firm has co-invested with various Seattle-area venture capital firms and backed startups such as Monod Bio, Outbound AI, and biotech startup Talus. Pack operates as a typical venture capital firm, raising money from limited partners and investing in startups independently of the university. The concept of university-affiliated venture funds, like Pack, is not new, but it is seen as an important step in leveraging research and promoting entrepreneurial activity on campus.
The University of Washington has a long-standing effort to commercialize research and promote entrepreneurial activity, but Pack Ventures represents a unique approach to supporting UW founders and innovations. The fund allows for diverse participation from investors, including leaders from companies like Amazon and Microsoft who may not typically invest in venture capital funds. Pack is structured as a 506(b) fund, which allows for active promotion and advertising to accredited investors, as well as smaller individual investments. The fund also offers sidecar investments, giving LPs the opportunity to provide additional funding to companies in the Pack portfolio.
As Pack Ventures looks to raise a new fund, Ken Horenstein emphasizes the potential impact the fund can have in supporting UW founders and driving entrepreneurship within the university community. The firm hopes to sign larger checks with the new fund, ranging from $25,000 to $750,000 per investment. While Pack faces challenges in a volatile venture market and as a new and unproven fund, Horenstein remains optimistic about the potential for success. The fund aims to catalyze entrepreneurial activity at the University of Washington and hopes to see a shift in the Husky culture towards embracing entrepreneurship as a viable career path.
Pack Ventures will be hosting an event to share more information about its new fund, aiming to attract investors interested in supporting UW-affiliated startups and contributing to the entrepreneurial ecosystem in Seattle. The firm’s success in raising funds and investing in innovative startups demonstrates the potential for university-affiliated venture capital funds to play a significant role in promoting entrepreneurship and commercializing research. With a focus on supporting UW founders and leveraging the university’s research capabilities, Pack Ventures aims to make a lasting impact on the Seattle entrepreneurial ecosystem and beyond.
