VC Firm Patron Raises $100 Million For Consumer Startups
Early-stage venture capital firm Patron says its second fund has raised $100 million.
The fund, announced Tuesday (Sept. 17), included investors such as Andreessen Horowitz Co-founder Marc Andreessen and General Partner Chris Dixon. Patron said the investor support highlights confidence in a future where technology is shaped by mass consumer adoption of games.
“Hundreds of millions of consumers are growing up immersed in platforms like Roblox and Discord, spending the bulk of their online time in these environments as the first truly gaming-native generation,” said Brian Cho, Patron co-founder and general partner.
“We are excited to continue backing visionary founders who are pioneering new experiences for this generation, using gaming as the initial wedge to build venture-scale businesses and reshape how these consumers engage with the internet.”
The company’s first fund invested in 21 companies, many of which have since raised more capital, the release added. Among them are Tonic Music, a platform for live-streaming music practice, sandbox gaming studio Raid Base, and artificial intelligence (AI)-powered smart wallet Kudos.
“Kudos has received numerous benefits from being a Patron portfolio company. They have brokered pivotal introductions, provided advice whenever we need it and helped us continue to scale and build our company and community. Their partnership was invaluable for our Series A and will continue to be as we grow,” said Tikue Anazodo, CEO and co-founder at Kudos. “We congratulate them for their successful fundraise.”
The funding comes as companies are employing virtual spaces to attract real-life customers, a topic PYMNTS has been monitoring lately.
For example, quick-service restaurant (QSR) chain Whataburger announced its first tournament within online video game Fortnite in July, letting consumers compete to win cash prizes. Months earlier, the fast-casual brand Wow Bao teamed with game platform and game creation system Roblox, integrating the platform with its rewards program to let consumers earn coupons for physical food items via virtual play.
“By launching these experiences within popular games, these eateries aim to engage younger audiences in a dynamic environment that offers a degree of immersion that traditional advertising cannot equal,” PYMNTS wrote.
Meanwhile, fashion brands are turning to the metaverse and video game worlds to release digital clothing and accessories to drive new sales opportunities and consumer engagement.
Vans, for instance, expanded its Roblox presence this summer, while Valentino has also been somewhat active in the gaming space, from dropping in-game apparel for Animal Crossing to creating virtual ensembles for Meta’s virtual reality (VR) avatars, something Balenciaga, Prada and Thom Browne have done as well.
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