Animal Capital announced the closing of Animal Capital Fund III with $33 million in total commitments, marking a significant increase from its previous funds and enabling the firm to expand its focus on early-stage investments.

The new fund represents substantial growth from the firm’s $13 million Fund I and $16 million Fund II. Animal Capital also plans to increase its target check size by approximately 150% compared with its inaugural fund, continuing to focus primarily on U.S.-based startups using technology to improve consumers’ lives and experiences.

Founded in 2020 by Marshall Sandman after leading venture capital efforts at WarnerMedia, Animal Capital expanded its leadership team in 2022 with the addition of Managing Partner Dylann Sands. Both executives previously worked together in Goldman Sachs’ investment banking division.

The firm said it has achieved a 60% to 70% graduation rate for portfolio companies progressing from seed rounds to Series A and B financings. Over the last five years, Animal Capital has invested in companies including Whatnot, Colossal Biosciences, Whop, and Underdog Sports during their early stages. The portfolio also includes companies such as Unrivaled, Somos, Sundays For Dogs, Breakaway, Array Labs, and BuyWander.

Animal Capital’s investor base includes technology founders, executives, and cultural figures. Returning investors include Paris Hilton, Kevin Mayer, Justin Kan, Gary Cohn, Rich Miner, and Jason Karp, while new strategic partners include Pete Davidson. Other investors include Mark Wahlberg, Christina Aguilera, James Corden, Taylor Fritz, and Mr. Beast.

The firm has also seen several portfolio exits, including Saturn’s acquisition by Snapchat, Deliverr’s acquisition by Shopify, Inkbox’s acquisition by BIC, and Stage10’s acquisition by eBay.

KEY QUOTES:

“We want to be MVP’s in our category. We delivered significant value to our investors in a market cycle where creator funds have died out. We deliver the most value from pre-seed to Series A, and we’ll keep doing that just the way we always have.”

Marshall Sandman, General Partner, Animal Capital