It is estimated that there is a $1.4 trillion annual opportunity in the US that the overlooked founders could collectively represent. Bridging this funding gap, US-based VC firm Beta Boom has closed a $14.5 million Fund II.
The fund was raised by Managing Partners and co-founders Kimmy and Sergio Paluch alongside Limited Partners, including Ally Bank, Melinda French Gates’ Pivotal Ventures, Bank of America, and Atento Capital that invested in Percepto, the fund will support early-stage startups that address the most critical needs of the fastest-growing, yet least-served populations.
Serves beyond Silicon Valley
Beta Boom looks beyond referral networks and major tech hubs, focusing across America’s Heartland. It values grit and perseverance over pedigree and looks beyond Silicon Valley for founders who are intimately connected to the problems they are trying to solve. The firm invests primarily in fintech, digital health, and the future of work, areas where the greatest opportunities lie in addressing unmet needs.
“The closing of this fund allows us to continue investing in software startups that not only solve real and meaningful problems, but that also have strong market potential. We see the greatest needs and opportunities in fintech, digital health, and the future of work, and that’s where Beta Boom’s focus remains,” said Kimmy Paluch, Co-founder and Managing Partner of Beta Boom. “We’ve always seen ourselves as somewhat of outliers in the VC space, and we have so much conviction in that. Not only have we created a sourcing strategy that’s purpose-built to identify
incredible founders outside major tech hubs like Silicon Valley, but we are also ludicrously hands-on in the way we support our founders – because our investment in their success is driven by purpose.”
“Beta Boom is doing something different. We’ve been impressed by Kimmy’s deep experience and relationships, allowing the team to have steady, individualised support for their founders. Their unmatched growth mindset gives them the flexibility to learn, absorb, and adjust in an unpredictable ecosystem,” said Erin Harkless Moore, Senior Director of Investments at Pivotal Ventures.
Portfolio of investments
Through a self-funded Fund I and its current Fund II, Beta Boom has already invested in 20 companies alongside leading investors like Union Square Ventures, Acumen America, SoGal Ventures, Serena Ventures, BBG Ventures, Alumni Ventures Group and others; supporting impact-driven companies as mentioned below.
- Bolder Money: An online money coaching program, which has increased the members’ wealth by $12K on average.
- Canopie: It addresses the maternal mental health crisis with accessible, evidence-based care. It has helped 80% of its mothers achieve clinically significant improvements.
- Attane Health: It provides healthy food access for those living with chronic health conditions such as diabetes and heart disease.
In addition to these investments, Beta Boom’s General Partners have led innovation and growth projects for some of the world’s leading brands, such as Google, and TiVo.
“Many of our founders tell us that Beta Boom is the first time they feel like they’ve been taken seriously – which is both encouraging and discerning at the same time. We don’t care about a founder’s professional background or location; what we’re truly looking for is someone who has persevered in the face of adversity,” said Sergio Paluch, Co-founder and Managing Partner of Beta Boom. “Founders who are intimately connected to the problem they are trying to solve not only have a proven track record but also have the power to become the next generation of unicorn founders – if given the opportunity.”
“Beta Boom’s approach is truly unique and special. Time and time again Kimmy and Sergio demonstrate their roles as true partners and champions, not only because they provide critical, actionable support, but also because they see the potential and greatness in founders when they often struggle to see it themselves. Simply put, Beta Boom sets a new standard for the relationship investors need to have with their portfolio companies,” said Emily Brown, Co-founder and CEO of Attane Health.
