SNAK Venture Partners raises $50M fund to back vertical marketplaces

SNAK Venture Partners has successfully closed its inaugural fund, raising an impressive $50 million, which was oversubscribed. This fund has been anchored by the Pritzker Group, an investment firm founded by Illinois Governor JB Pritzker and his brother, Tony. Founders Sonia Nagar and Adam Koopersmith, both former employees of the Pritzker Group, have a history of steering investments in companies such as Backlot Cars, an auto marketplace, and TicketsNow, which was acquired by Ticketmaster. With a vision to support digital marketplaces, the duo launched SNAK earlier this year. "The timing felt right, and we had internal support to venture out on our own," Nagar stated. Nagar emphasized the vast potential for digitization across various sectors, including supply chain and construction. As industries that have traditionally been hesitant begin to embrace new technologies—thanks in part to advancements in fintech—now seems an opportune moment for investment. She noted the major successes in venture capital over the past decade, highlighting that companies like Uber, Instacart, and Airbnb have delivered substantial returns for their investors. The founders are particularly focused on B2B marketplaces, aiming to explore sectors that have yet to transition to digital platforms. They have already made investments in six companies, such as BigRentals and Repackify, which specialize in equipment rental and packaging logistics, respectively. Nagar revealed ambitions to invest in at least 20 companies, with individual investments ranging from $1 million to $2 million, hoping to deploy the full fund within the next three to four years. Despite the challenges many new funds face in securing capital, Nagar and Koopersmith leveraged their extensive backgrounds to attract limited partners (LPs). Nagar previously played a pivotal role in launching Amazon’s apparel division and led mobile initiatives at RetailMeNot, while Koopersmith boasts 20 years at the Pritzker Group and sits on several marketplace boards. Nagar acknowledged that the support from Pritzker was crucial, especially given the tough fundraising environment of the past year. Other contributors to the fund include the State of Illinois Growth and Innovation Fund, along with executives from marketplace companies like Favor Delivery and RetailMeNot. SNAK’s approach is also location-agnostic, as the founders recognize that promising marketplaces might be found beyond the typical hotspots of Silicon Valley and New York City. "We’re uncovering hidden gems in regions that other funds might overlook," Nagar explained. Based in Chicago, she sees their location as an asset, stating, "We can quickly reach out to all potential opportunities, which some believe is a disadvantage, but we view it differently."