Gateway Capital announces first close of $25M Fund II: venture
Gateway Capital, founded by Dana Guthrie, has completed the first close of its $25 million target Fund II, enabling immediate investment operations. The Milwaukee-based firm plans to back at least 20 Midwest-focused companies with average checks between $500,000 and $600,000, targeting sectors like supply chain, logistics, and manufacturing AI.
Milwaukee, WI — Gateway Capital Partners, the burgeoning venture capital firm founded by Dana Guthrie, has officially announced the successful first close of its second investment vehicle, Fund II, which targets an ambitious $25 million. This pivotal development, confirmed by the Milwaukee-based firm to TechCrunch, means that Fund II is now fully operational and ready to commence its investment activities. The fundraising initiative for this new fund began just mid-last year, underscoring the rapid momentum Gateway Capital has generated in the venture landscape.
The firm opted not to disclose the precise amount secured in this initial closing phase. However, the first close signifies that Gateway Capital possesses sufficient capital to begin deploying investments into promising startups. Fund II is strategically designed to provide average check sizes ranging from $500,000 to $600,000. This increased allocation per company, compared to their previous fund, empowers Gateway Capital to offer more substantial support to early-stage ventures, fostering deeper partnerships and accelerating growth trajectories.
Under the leadership of Dana Guthrie, Fund II will maintain an overarching industry-agnostic investment strategy. Nevertheless, it will exhibit a pronounced bias towards industries within the Midwest region that are particularly ripe for transformative disruption. Key sectors of focus include the complex yet crucial domains of supply chain and logistics, as well as the rapidly evolving field of manufacturing AI. Guthrie has articulated a clear objective to back at least 20 companies through this fund, aiming to build a diverse and impactful portfolio that addresses pressing market needs and leverages regional strengths.
Gateway Capital was established in 2020, making a significant entry into the venture capital ecosystem. Its inaugural fund, Fund I, successfully closed at $13 million within the same year of its launch. The remarkable nearly doubling of the target fund size from Fund I to Fund II in such a short span of time highlights the firm's impressive growth, its ability to attract substantial limited partner commitments, and the increasing recognition of its strategic investment philosophy. This expansion signals a robust vote of confidence from investors in Gateway Capital’s vision and execution.
This latest fund close is particularly significant for the Midwest startup ecosystem, often overlooked by venture capital flowing primarily into coastal tech hubs. Gateway Capital's dedicated focus on regional innovation ensures that promising startups in the heartland receive essential funding and strategic guidance. By investing in foundational sectors like logistics and manufacturing, coupled with cutting-edge AI, the firm is not just deploying capital but actively contributing to the technological advancement and economic resilience of the Midwest. It underscores a broader trend of decentralized tech growth.
The immediate implication of this first close is that the search for Fund II's portfolio companies can now officially begin. Gateway Capital is poised for a period of intense activity, identifying and partnering with entrepreneurs who are building the next generation of disruptive companies in its target sectors. The successful initial fundraising positions Dana Guthrie and her team to make a lasting impact, driving both financial returns for its limited partners and fostering a thriving environment for innovation across the region. The venture community will be watching closely as Gateway Capital deploys its newly acquired capital.
FAQ
Q: What is the target size for Gateway Capital's new Fund II?
A: Gateway Capital is aiming to raise a total of $25 million for its second fund.
Q: What specific industries will Fund II prioritize for investment?
A: While generally industry-agnostic, Fund II will have a bias towards Midwest industries ripe for disruption, specifically supply chain and logistics, and manufacturing AI.
Q: How does Fund II's target size compare to Gateway Capital's previous fund?
A: Fund II's target of $25 million represents a significant increase from Gateway Capital's inaugural Fund I, which closed at $13 million in 2020.
Related articles
Microsoft Unveils ASSERT, Simplifying AI Behavior Testing with Text
Microsoft has launched ASSERT, an open-source framework designed to simplify AI behavior testing. It enables developers to create comprehensive, application-specific evaluations using natural language descriptions, ensuring AI systems act as intended for particular products and services. The tool translates high-level goals into structured tests, generates scenarios, scores results, and logs execution paths.
Trump Orders Voluntary AI Model Review Before Release
President Trump has signed an executive order creating a voluntary framework for AI companies to share advanced models with the federal government before release. This initiative aims to bolster secure innovation and protect critical infrastructure, reflecting a shift from the administration's previous hands-off approach to AI safety. Companies opting for pre-release review may receive confidentiality protections.
Blue Origin's New Glenn Explosion: Key Components Survive, 2026
Blue Origin announced that critical fuel tanks and key launch pad components survived last week's New Glenn rocket explosion, paving a faster path back to flight. CEO Dave Limp pledges a return to orbital missions before year-end, which is crucial for NASA's Artemis lunar program to maintain its tight schedule for crewed landings.
ZeroDrift raises $10M to protect AI models from themselves: AI
ZeroDrift, an AI compliance startup, has secured $10 million in seed funding from investors like a16z Speedrun. The company's service acts as a crucial intermediary, detecting compliance violations in AI-generated messages and rewriting them to meet regulatory standards like SOC 2 and GDPR. This rapid, oversubscribed funding round highlights the urgent demand for robust AI governance solutions as businesses scale AI adoption.
startups: The White House is at war with itself over who gets to
An intense internal power struggle within the Trump administration has stalled US federal AI regulation, leaving a policy vacuum after Anthropic's Mythos model revealed critical cybersecurity risks. Factions within the Commerce Department, intelligence agencies, and pro-industry groups are locked in a "knife fight" over who gets to evaluate and oversee advanced AI systems. This paralysis follows the abrupt cancellation of a landmark executive order and the unexplained withdrawal of AI testing announcements.
Navigating the Global AI Arena: Beyond Silicon Valley's Borders
The international AI landscape presents unique challenges and opportunities, requiring developers to think beyond traditional tech hubs. Key aspects include adapting AI models to local languages and cultures, navigating the complex global supply chain for critical hardware like semiconductors, and understanding how venture capital assesses these international ventures. Success hinges on deep local market understanding, robust technical solutions for localization, and resilience against logistical hurdles.