Rackhouse Ventures Closes $45M Fund II for AI Startups

Rackhouse Venture Capital of San Francisco has successfully concluded the funding of Rackhouse Ventures Fund II, acquiring $45 million in closed capital and commitments. The focus of Fund II is to partner with startups and founders who have achieved product-market fit in underserved areas and demonstrated a strong customer focus. 

The fund is particularly interested in pragmatic founders in GenAI, AI Services, and Data-enabled Marketplaces, who possess agile technology teams and unique distribution strategies. The closure of Fund II coincides with the opening of Rackhouse Ventures' first office in San Francisco's South of Market neighborhood.

The team at Rackhouse Ventures comprises industry experts with operational experience in AI/ML, led by founder Kevin Novak, Uber’s first Head of Data Science.  Fund II has already completed eight investments, including Onbrand, Insummary, and Crosshatch.io, and is focused on supporting visionary founders to identify the next generation of AI leaders.

Fund II investments are divided between U.S. and international companies, demonstrating Rackhouse Ventures' ability to capitalize on global opportunities in the AI space. The successful performance of Fund I, which closed at $22.3 million, has positioned Rackhouse Ventures as a leader in supporting early-stage startups with AI/ML solutions, earning the firm a top 5% ranking according to Cambridge Associates.  Read the full press release here.