Revolution LLC is an American investment firm based in Washington, D.C., founded in 2005 by AOL co-founder Steve Case, after leaving the AOL Time Warner board.[1] The firm seeks to fund entrepreneurs who are transforming legacy industries with innovative products and services, with an overarching focus on companies that are based outside of the coastal tech hubs of NYC, SF and Boston.[2] Through the firm's Rise of the Rest platform, it has developed a network of business and civic relationships that helps Revolution source investments and support existing companies as they seek to expand across the country.[3] Notable investments include LivingSocial, Zipcar, DraftKings and sweetgreen.[4]

Revolution LLC
IndustryVenture capital
Founded2005
FounderSteve Case
Donn Davis
Tige Savage
HeadquartersWashington, D.C., United States
Key people
Chairman and CEO:
Steve Case
Websitewww.revolution.com

Foundation

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Revolution LLC was founded in 2005 by Steve Case, a well-known entrepreneur and a co-founder of America Online (AOL), the first Internet company in the world to go public along with Donn Davis and Tige Savage.[1][5] After negotiating the merger of AOL and Time Warner, a transaction that today remains the largest merger in business history,[6] AOL Time Warner floundered and Case resigned from his post in January 2003, with the merger often cited as one of the worst mergers ever.[7] After leaving the AOL Time Warner board in 2005, Case co-founded venture capital firm, Revolution LLC, where he is the chairman and CEO.[8]

Investment funds

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Revolution operates three major investment funds with different focuses.

Revolution Ventures focuses on early-stage technology investments under $10 million.[9] Revolution later announced their "Rise of the Rest" seed fund that included major investors from across multiple industries including Jeff Bezos and the Walton Family.[10]

Revolution Growth makes growth-stage investments of $10 million and above, primarily in consumer technology businesses. It was created in 2011 with $450 million of initial capital.[11] It typically invests in two to three new companies per year, mostly on the East Coast of the United States.[12] Its major investments have included Sweetgreen,[13] Bigcommerce,[14] Optoro,[15] Handybook,[16] and PolicyGenius.[17]

Revolution Places makes real estate and hospitality investments, usually between $25 and $50 million. It is usually the majority shareholder in each portfolio company.[18]

Profile investments in the collective Revolution portfolio include Zipcar, LivingSocial, Lolly Wolly Doodle, Waterfront Media, FedBid, Exclusive Resorts, Inspirato, Miraval, SparkPeople, Extend Health, BrainScope, AddThis, BenchPrep,[citation needed] Framebridge,[19] SpareFoot,[citation needed] OrderUp,[citation needed] and Custom Ink.[citation needed]

References

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  1. ^ a b "Revolution LLC: Private Company Information". BusinessWeek. Archived from the original on January 18, 2013. Retrieved 2008-04-21.
  2. ^ "Our Story". Revolution. Retrieved 2020-09-25.
  3. ^ "Rise of the Rest Seed Fund". Revolution. Retrieved 2020-09-25.
  4. ^ "Companies". Revolution. Retrieved 2020-09-25.
  5. ^ "Steve Case at IGNITION". BusinessInsider. Retrieved 2013-03-01.
  6. ^ "AOL and Time Warner Announce Merger". New York Times. 2012-01-10. Retrieved 2013-03-01.
  7. ^ Final farewell to worst deal in history - AOL-Time Warner
  8. ^ "Steve Case's Rise of the Rest tour is returning to Louisville". www.bizjournals.com. Retrieved 2018-06-21.
  9. ^ "Revolution Team". Revolution. Retrieved 2013-03-01.
  10. ^ Sorkin, Andrew Ross (5 December 2017). "From Bezos to Walton, Big Investors Back Fund for 'Flyover' Start-Ups". The New York Times.
  11. ^ "Steve Case's Revolution Raises $450M Growth Fund". BusinessWeek. Archived from the original on December 14, 2011. Retrieved 2013-03-01.
  12. ^ "Steve Case Fund". Mashable. December 2011. Retrieved 2013-03-01.
  13. ^ Alden, William (4 December 2014). "Revolution Fund Invests in Sweetgreen Salad Chain". The New York Times. Retrieved 16 November 2014.
  14. ^ Nassim Khadem (26 July 2013). "Start-up Bigcommerce gets 'biggest ever' $US40m capital hit from Revolution Growth". BRW. Retrieved 16 November 2014.
  15. ^ Grant, Rebecca (17 July 2013). "Revolution Growth Fund invests $23.5M in Optoro to find unwanted goods a home". VentureBeat. Retrieved 16 November 2014.
  16. ^ Lawler, Ryan (11 June 2014). "On-Demand Home Services Startup Handybook Raises $30M From Steve Case's Revolution Growth". TechCrunch. Retrieved 16 November 2014.
  17. ^ Shieber, Jonathan (15 January 2016). "PolicyGenius Raises $15 Million For Its Online Price Comparison Insurance Brokerage". TechCrunch. Retrieved 2016-02-01.
  18. ^ Marr, Kendra (2007-08-03). "Revolution Places". Washington Post. Retrieved 2013-03-01.
  19. ^ "SWaN & Legend, NEA, Revolution Ventures invest $9 mln in Framebridge". PE Hub. 2016-04-21. Retrieved 2019-06-14.
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