Oberlin in the Bullpen as third fund closes at $75m

US-based venture capital firm Bullpen Capital has closed its third fund at $75m, securing commitments from limited partners including Oberlin College to support post-seed startups, VentureBeat reported yesterday.

Fund managers Greenspring Associates and Venture Investment Associates (VIA) also signed limited partnership agreements to become investors in Bullpen III.

Founded in 2010 but launched in 2011, Bullpen supports startups that have moved beyond the seed stage but are not yet ready for a major series A round.

The firm targets startups backed by “super angels”, or well-established angel investors who have the track record and industry connections to raise capital from third parties to invest, rather than relying solely on their own funds.

Bullpen sought to raise $50m for its first fund in 2010 and $35m for its second fund in 2012, regulatory filings show. According to VentureBeat, Bullpen previously raised a total of about $110 million in funds.

The firm has invested in Edinburgh University spinout FanDuel, a daily fantasy sports platform that merged last month with rival DraftKings to become the dominant player in the sector.

Paul Martino, Bullpen founder and general partner, told TechCrunch that the firm will focus on startups operating in sectors that mainstream venture capital investors may be neglecting: “Whatever was hot two or three years ago is exactly what we’re investing in.

“Like when we did our first fund, nobody wanted to do e-commerce. We did an e-commerce deal and soon [men’s grooming products retailer] Dollar Shave Club and [bulk purchasing e-commerce platform] Jet bought in huge deals, and now everybody wants in on the good e-commerce brands.”

“We know we do not know how to predict the future, but we know how to identify the good companies that are still around from that accelerator batch three years back.”