Silas Capital has recently secured substantial funding of $150 million for a fund titled Silas Capital Partners II. This fund is primarily focused on propelling the growth of start-ups in beauty, fashion, and wellness.
The funding stems from a diverse range of institutional investors. Among the financial backers are endowments, global asset managers, insurance firms, and multinational CPG firms. However, due to confidentiality reasons, their exact identities have not been disclosed.
The funding will be allocated within the range of $3 million to over $15 million, following Silas Capital’s “emerging growth” strategy. This is set to invigorate the growth of versatile consumer brands, whose revenues are projected between $5 million and $50 million, with a primary focus on sectors like technology, retail, and healthcare.
In addition to funds, the firm will also provide strategic advice and potential business connections to these burgeoning companies. Silas Capital sees this strategy as a chance for a significant return on investment as these brands flourish and expand.
According to in-house sources, Silas Capital already made notable investments in brands such as Mario, Vacation Sunscreen, Hello Cake, and Wonder Belly during the capital formation of Fund II. Capital has also been dedicated to Super Health Foods, contributing to the firm’s portfolio expansion across diverse brands and industries.
Founded in 2012, Silas Capital might apportion as much as 10% of its capital toward budding and early-stage brands through two micro funds, Silas Ventures I & II. This furthers the company’s trajectory of growth and diversification.
The success of Silas Capital reflects a broader trend within the US as start-ups continue to thrive, partly due to the economic disruptions caused by the pandemic. According to the U.S. Census Bureau, 2021 witnessed a significant increase in the rate of business start-ups, creating over 476,000 new companies.
In the face of shifting economic landscapes, entrepreneurs have demonstrated resilience by creating innovative solutions. In 2021, US start-ups raised a historic high of $130 billion according to the National Venture Capital Association (NVCA), a marked increase from the previous year’s $103 billion.
With increasing digitization and evolving consumer behavior, the start-up ecosystem is poised for further growth. This trend towards flexible and digital-first business models suggests that the startup boom is set to continue.
