Key facts
- Endeavor Catalyst closed its fifth fund with $320 million in capital commitments.
- The firm's total assets under management now exceed $850 million.
- The fund aims to support founders outside of major tech hubs, with about 90% of investments historically made outside the U.S.
- Endeavor Catalyst plans to invest in 40 to 50 companies annually with the new fund.
- The venture arm has backed 437 companies across 44 markets to date.
- Notable past investments include ElevenLabs, Bending Spoons, and Checkout.com.
Endeavor Catalyst has successfully closed its fifth fund, securing $320 million in capital commitments. This significant raise boosts the firm's total assets under management to over $850 million and is particularly beneficial for founders located outside of major technology hubs like San Francisco, who may be overlooked by venture capital firms increasingly focused on Silicon Valley's AI sector.
As the venture arm of Endeavor, a New York-based global nonprofit with a 30-year history of supporting entrepreneurs outside of traditional tech centers, Endeavor Catalyst aims to provide capital and resources to founders in what it terms "elsewhere." The fund is managed by Allen Taylor and Jackie Carmel, alongside a 16-person team, with Endeavor itself serving as the general partner. According to Linda Rottenberg, co-founder of Endeavor and Endeavor Catalyst, a portion of the fund's profits are reinvested into Endeavor to support future generations of founders.
The selection process for founders is rigorous, requiring entry into Endeavor's network, which provides access to mentoring and extensive connections. Last year, Endeavor screened over 10,000 candidates, selecting 88. The network now comprises more than 3,100 entrepreneurs across over 50 countries.
Catalyst typically invests between $1 million and $3 million in a company's funding round, not exceeding 10% of the round size, when a founder's company raises at least $5 million led by another institutional investor. The team anticipates making 40 to 50 investments annually, potentially backing up to 150 companies with this new fund over the next few years.
While specific cash-on-cash return figures were not disclosed, Endeavor Catalyst has backed 437 companies in 44 markets across its five funds. Of these, 83 startups have achieved valuations of $1 billion or more, with 39 exits and 11 IPOs recorded. Current valuable holdings include AI voice tool maker ElevenLabs, valued at $22 billion; Italy-based Bending Spoons, which recently went public and has a $26 billion market cap; and New York-based Reflection AI, valued at $25 billion. Other notable investments include Checkout.com ($12 billion valuation), Flutterwave ($3.2 billion), and Replit ($9 billion valuation).
Endeavor Global's board includes notable figures such as Reid Hoffman and Edgar Bronfman Jr. The new fund has attracted 400 limited partners, including Hoffman and hedge fund manager Bill Ackman, with approximately 30% being Endeavor founders themselves. The firm's investment strategy, with about 90% of its investments outside the U.S., suggests a focus on markets that may be overlooked by other investors. Europe is currently its fastest-growing region, and repeat founders are also becoming a larger part of its portfolio.