Better Ventures Closes $21 Million Fund to Back the Next Tesla or Patagonia
Oakland-based venture capital firm Better Ventures recently closed its second fund at $21 million according to cofounder and managing director Wes Selke.
The firm was originally founded as an accelerator called Hub Ventures to help social entrepreneurs running so-called “triple bottom line” startups. These companies measure their success not only by revenue and profitability, but also by their products’ quantified, positive social or environmental impact.
Famous examples of social ventures include outdoor gear and apparel makers Patagonia, which promises to protect and preserve the environment, and Tesla Motors which aims to “accelerate the world’s transition to sustainable energy” with electric vehicles and now solar products.
By 2013, after running the accelerator for three years, Selke said that he and cofounder and general partner Rick Moss decided to become more of a “high engagement seed fund.” That would allow them to invest higher amounts of capital into for profit, for good companies, and stick with founders for more than a few months of bootcamp-style mentorship, he explained.