M13 Doubles Down on Web3 With $400 Million Third Fund

Harri Weber

Harri is dot.LA's senior finance reporter. She previously worked for Gizmodo, Fast Company, VentureBeat and Flipboard. Find her on Twitter and send tips on L.A. startups and venture capital to harrison@dot.la.

​The partners at M13.
Joseph Seif

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M13, the consumer tech-focused venture capital firm that has backed the likes of Snap, Bird and Lyft, has landed by far its largest fundraising haul to date—raising $400 million for its third fund.

The new fund far exceeded M13’s target of $275 million raised, the Santa Monica-based firm said Thursday. It plans to deploy the cash to early-stage startups across four broad investment categories: work, commerce, health and money.

These sectors aren’t anything new to the six-year-old firm—but this time, M13 plans to boost its focus on Web3, which encompasses blockchain-powered technologies such as cryptocurrencies and NFTs.

Carter Reum

M13 partner and cofounder Carter Reum.

“Every company that we invest in, in all four of those verticals, has to be thinking about Web3 and the underpinnings of Web3,” M13 co-founder and partner Carter Reum said in a call with dot.LA. “Not every company [M13 invests in] is going to be a web3 company, but it is a horizontal layer that’s going to sit across all of these industries.”

The venture firm’s third fund clocks in at more than twice the size of its second fund, which was also oversubscribed with $188 million raised in 2019. Four years earlier, M13 secured $92 million for its first fund. Reum says the firm now has $750 million in assets under its management. (Disclosure: M13 is an investor in dot.LA.)

“We’ve shown repeatability with two top-performing funds,” Reum said. “The only reason this fund is larger is that we believe our model around propulsion—this large operating team we have that works with our portfolio companies—is fundamentally impacting the companies that we invest in by helping them scale faster.”

M13 currently cuts checks as large as $15 million, with Reum telling dot.LA that the firm now seeks an ownership stake of 20% in the startups it funds—up from 15% in previous funds.

M13’s rise mirrors the growth of the broader Los Angeles and Southern California startup scenes, as well as the venture capital industry at large. Across more than 150 deals to date, M13 says it has backed 15 early-stage startups that have each reached valuations north of $1 billion each. As well as L.A.-based giants like Snap and Bird, those companies include smoothie brand Daily Harvest, 3D software firm Matterport and home security company Ring, which Amazon snapped up in 2018.

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TikTok Joins Forces with Cyversity for Minority Scholarship Cybersecurity Training Program

Steve Huff
Steve Huff is an Editor and Reporter at dot.LA. Steve was previously managing editor for The Metaverse Post and before that deputy digital editor for Maxim magazine. He has written for Inside Hook, Observer and New York Mag. Steve is the author of two official tie-ins books for AMC’s hit “Breaking Bad” prequel, “Better Call Saul.” He’s also a classically-trained tenor and has performed with opera companies and orchestras all over the Eastern U.S. He lives in the greater Boston metro area with his wife, educator Dr. Dana Huff.
TikTok Joins Forces with Cyversity for Minority Scholarship Cybersecurity Training Program
Courtesy of Shutterstock

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David Shultz

David Shultz reports on clean technology and electric vehicles, among other industries, for dot.LA. His writing has appeared in The Atlantic, Outside, Nautilus and many other publications.

​EVCS subscription plan on phone
image courtesy of EVCS

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Minnie Ingersoll
Minnie Ingersoll is a partner at TenOneTen and host of the LA Venture podcast. Prior to TenOneTen, Minnie was the COO and co-founder of $100M+ Shift.com, an online marketplace for used cars. Minnie started her career as an early product manager at Google. Minnie studied Computer Science at Stanford and has an MBA from HBS. She recently moved back to L.A. after 20+ years in the Bay Area and is excited to be a part of the growing tech ecosystem of Southern California. In her space time, Minnie surfs baby waves and raises baby people.
Kareem El Sawy
courtesy of Arrowroot Capital

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