Hyde Park Venture Partners, a Chicago-based early-stage firm, has secured $98 million in new capital commitments for its Fund IV, bringing its total assets under management to approximately $320 million. The firm, led by managing partner Greg Barnes and partners Allison Lechnir and Guy Turner, focuses on investing in founders primarily in the Midwest and Toronto.
Despite the challenges of fundraising during the past year, HPVP was able to attract a diverse group of limited partners for its fourth fund, including institutional investors, family offices, and ultra high-net worth individuals. New partner institutions, such as NVNG and Cintrifuse Capital, joined repeat backers like the Illinois Growth and Innovation Fund, RK Mellon Foundation, and Renaissance Venture Capital.
HPVP is known for its early investments in successful companies like ShipBob, FourKites, G2, LogicGate, and Dentologie. The firm often leads deals with average check sizes ranging from $500,000 to $4 million and plans to deploy the new fund into 20 to 22 companies. So far, HPVP has already invested in two companies from the fund: Diffit, which uses generative AI for customized lesson plans, and CivCheck, which accelerates the building permitting process.
The Midwest is gaining ground as a hub for startups, with investors like HPVP seeing the region’s potential for growth and innovation. Lechnir highlighted the advantages of investing in the Midwest, including slightly lower valuations at the seed stage compared to the coasts. The pandemic also played a role in attracting talent to the region, with more people choosing to live and work in the Midwest.
With a focus on bringing top talent to their portfolio companies, HPVP is committed to building strong connections within the region’s startup ecosystem. Barnes emphasized the importance of developing networks and fostering tight connections to support the growth of technology startups in the Midwest. As the region continues to thrive, firms like HPVP are poised to play a key role in fueling innovation and entrepreneurship in the heart of America.