Madrona Venture Labs is ready to help create the next generation of startups, thanks to a new investment and the backing of some of Seattle’s most prominent tech entrepreneurs.
On Wednesday, Madrona Venture Labs announced that it raised $8 million in new funding. In addition to the new funding, the startup incubator also announced its new business model, which adds MVL investors as co-founders to the startups it spins out.
This network of entrepreneurs and investors is perhaps most valuable part of working with MVL, since MVL has a sizable list of notable tech entrepreneurs who are onboard. This includes former Zillow CEO Spencer Rascoff, former Tinder CEO Elie Seidman, DocuSign co-founder Court Lorenzini, former Axiom CEO Elena Donio, former Expedia CEO Mike McSherry — and the list goes on.
Other MVL investors include executives from Qualtrics, Xealth, Tableau, and Auth0. By going through MVL, startups will be able to recruit the support of these experienced entrepreneurs to their own company, which will help them further their business even after they leave MVL.
Like other startup incubators, Madrona Venture Labs helps entrepreneurs formalize their idea, build it into a business plan and seek out funding. Uplevel, Spruce Up and Zeitworks are some examples of Seattle-area startups that went through the MVL program.
But startups that go through MVL also get to leverage the relationship it has with Madrona Venture Group — one of Seattle’s biggest tech VCs. This close partnership helps give startups a pathway to raising their first funding rounds, if that’s something they’re interested in.
This new investment into MVL will help the company continue offering its services and work with more startups in the future.
“The new funding will be used to create more companies in partnership with founders, operating executive investors and Madrona Venture Group,” Madrona Venture Labs managing director and CEO Mike Fridgen told Built In. “This funding shows not only the confidence that longtime supporter, Madrona Venture Group, has in MVL, but also the incredible community we have in Seattle of successful founders and operating executives. These individuals are investing in the round and are also committing to co-found companies with our founders. We believe we’re creating a unique advantage for founders as they partner with fantastic leaders, entrepreneurs and investors to make their vision a reality.”
Fridgen added that MVL expects to spin out about 6 to 8 companies in the next 2 to 3 years, continuing the impact it has on the Seattle startup scene.
