AlleyCorp Raises $335 Million Second Fund for Early-Stage Tech Bets
Updated
Updated · Fortune · Jul 15
AlleyCorp Raises $335 Million Second Fund for Early-Stage Tech Bets
3 articles · Updated · Fortune · Jul 15
Summary
$335 million marks AlleyCorp’s second fund, aimed at early-stage healthcare, deep tech and general tech startups, after the firm first took outside capital with a $250 million fund in 2024.
Kevin Ryan said AlleyCorp is sticking to first checks under $10 million and backing companies before they become obvious winners, arguing mega-rounds for OpenAI, Anthropic and SpaceX are a separate category from traditional venture capital.
The firm says its earlier investments have produced a 60% all-time IRR and its current portfolio includes eight unicorns such as Rogo, ShopMy, Valar Atomics and Thyme Care.
Ryan said a future fund could grow to $500 million or $600 million by adding sectors or geographies, even as AlleyCorp keeps its focus on young companies in a venture market distorted by AI-driven capital concentration.