Seed-stage VC firm Homebrew announces it has closed a $90M fund, its third after raising $50M in 2015 and $35M in 2013
Katie Roof / TechCrunch :
Context & Ripple Effects
Homebrew's third fund nearly doubles its second: the firm moved from a $35M debut in 2013 to $50M in 2015 to $90M now, making it one of the seed firms scaling up rather than staying flat. The pattern is not unique to it — SV Angel overshot its target to close $53M for its sixth seed fund in late 2016, and Seedcamp almost doubled its fund to £41M just months before this raise.
First-order effects
- Homebrew's partners gain roughly 80% more deployable capital per vintage than its 2015 fund, letting the firm write larger initial checks or hold more reserves for follow-ons in companies it seeds.
Second-order effects
- Rival seed firms competing for the same early-stage deals face a barbell of bigger seed checks from scaled funds like Homebrew, pushing smaller seed players toward either niche focus or their own larger raises — the path SV Angel and Seedcamp already took.
Third-order effects
- If seed funds keep growing per vintage, the line between seed and Series A blurs structurally: seed firms begin holding meaningful ownership through later rounds, and LPs allocate to fewer, larger seed vehicles instead of many small ones.
The trend: Seed-stage venture is consolidating into fewer but materially larger funds, with each successive vintage at firms like Homebrew, SV Angel, and Seedcamp out-sizing the last.