Bee Partners, a San Francisco-based venture capital firm, has closed its fourth fund with $50 million in commitments, exceeding its target. Specializing in deep tech, Bee Partners invests in companies at the forefront of artificial intelligence, machine learning, robotics, and frontier technologies. While the funding landscape in this space has experienced a slowdown, Bee Partners has witnessed a 40% increase in deal flow year over year.
Managing partner Michael Berolzheimer believes that much of the innovation in deep tech is arising from laboratories. Despite the disruption and potential that stems from this field, many deserving deep tech companies struggle to secure adequate funding. Nevertheless, deep tech remains the second-most invested segment after energy, according to Dealroom.co’s report on Q2 2023.
Unlike many other investors, Bee Partners is willing to make relatively large investments at the pre-seed stage. Berolzheimer proudly states, “We’ll invest in a team with a great idea, even in a company not incorporated yet. We are literally writing that first check only days after incorporation, and we’re comfortable doing so.” Bee Partners aims to provide capital and support to early-stage companies, enabling them to bring their innovations to market.
The firm’s limited partners include a Boston-based university endowment and several U.S.-based family offices. Bee Partners is one of the few firms that offers a unique partnership model, ensuring that founders can tap into the collective expertise of the entire partner team. This collaborative approach distinguishes Bee Partners from its peers, allowing them to provide comprehensive support to their portfolio companies.
To date, Bee Partners IV has already invested 20% of its capital in nine companies, including three generative AI companies. With the recent fund closure, Bee Partners now manages over $130 million in total commitments, making it their largest fund to date. Over the past four years, Bee Partners has typically invested in 25 companies per fund, with an average check size of $800,000. Notably, approximately 60% of their portfolio companies have successfully advanced to the Series A stage.
As Bee Partners continues to concentrate on their targeted investment approach, they remain committed to supporting founders from inception to product-market fit and beyond. With their deep expertise in deep tech and collaborative partnership, Bee Partners is poised to drive innovation and shape the future of the industry.
FAQ
What areas does Bee Partners focus on?
Bee Partners specializes in investing in companies at the forefront of artificial intelligence, machine learning, robotics, and frontier technologies.
What makes Bee Partners unique?
Unlike other investors, Bee Partners is willing to make relatively large investments at the pre-seed stage. They also provide a partnership model where founders can work with the entire team of partners, offering comprehensive support.
How much funding did Bee Partners raise in their fourth fund?
Bee Partners closed its fourth fund with $50 million in commitments, making it their largest fund to date.
What is the average check size for Bee Partners?
Bee Partners’ average check size is $800,000, but they have invested as low as $350,000 and as high as $1.5 million in companies.
What is Bee Partners’ track record in helping companies reach Series A?
According to Bee Partners, over 60% of their portfolio companies have successfully progressed to the Series A stage.