Desiree Vargas Wrigley for Velocity Catalyst

Velocity Catalyst is a $50M hybrid fund designed to anchor high potential pre-seed startups and emerging fund managers in Chicago & Illinois’ most critical industries to produce market leading returns for our investors and accelerate the flow of capital in our ecosystem.

Hi Friends and Colleagues!
You're receiving this because we've worked together in the last few years, you're someone I admire, and I wanted to share what's next in my entrepreneurial journey.

As you may have heard, I'm launching a new fund for Chicago and Illinois called Velocity Catalyst.

My Thesis is this:

I'm building a startup using the 75 year-old business model of venture capital. We believe we can make better early-stage investments with higher returns by leveraging the scale, domain expertise, and capital of emerging seed stage funds in core industries to our region. By embedding Velocity into early stage funds, we create a symbiotic relationship, where our portfolio managers can help us source, vet, advise, and eventually provide follow-on funding to high potential pre-seed startups in our region. In exchange, we help anchor their funds and, when able, provide follow-on funding to their portfolio companies from our reserves. Our differentiated structure and pipeline give us a head start to access the best talent in our city. And the relationships we build for our founders with coinvestors and follow-on investors increase the likelihood of their successful graduation to early growth stage. Our regional focus allows us to have close proximity with both our founders and fund managers, creating the opportunity for a coordinated, cohort style support platform. 

My Why is multi-layered:

At the core of my why is that I believe Chicago is an incredible city filled with opportunity that fails to live up to its potential. P33, Innovate Illinois, and other infrastructure dollars that are coming to our city and state, mean the opportunity in core and emerging industries is only going to get better. As one of the most diversified economies, with incredible universities and research labs, and the 3rd largest GDP in the country, Chicago should be a leader in venture.  

I believe that entrepreneurship is the embodiment of the American Dream and it is the fastest path to economic mobility. I believe that capitalism and startups will drive how we solve most human problems including climate, poverty, and eventually equality. 

And on a more personal level, Chicago is the refuge that my great grandparents found escaping Nazi Germany. It is where my immigrant grandparents met and fell in love. It's where I met my husband, built my startups, made a name for myself, and am raising my children. And I want this city to be the place where my children and grandchildren see even more opportunities to live and thrive.  

I believe the way to do that is to create a robust venture economy where: 

• Talent stays because they 1) believe the capital is here to build their dreams and 2) that if their first startups fail, that they can go around the corner to another great opportunity in their industry and continue to learn and grow.  
• Where investors see wins from the asset class and recycle their returns back into the venture economy for a more virtuous flywheel. 
• People of all stages of career move and build here because they see the rising star of our city. 

I'm so grateful to the incredible business leaders and founders who have already committed to Velocity, and I can't wait to bring this vision to life.

Hired Jessie Casey!  Jessie joins Velocity after a formative internship with our friends at Listen Ventures and completing the Chicago:Blend Venture Fellows program.  Previously, she helped startups with go to market as part of the teams at Google and Big Commerce. She is currently helping me with all things fund formation and will move into a Principal role after first close.

Warehouse deal:  We’re very excited to be warehousing our first investment under Velocity Catalyst Fund I via an SPV that will convert into the full fund at first close. In many ways, this pre-seed HealthTech startup and its founder represent much of what we’re hoping to achieve with Velocity:

• Transplant founder who is being wooed by the coasts but understands the value of staying in Chicago for proximity to a large customer base (hospital systems).
• Building in a large market in a core industry to our state, Healthcare.
• Thesis fit and potential to receive follow-on funding from one of Velocity’s portfolio seed stage funds.
• Secured favorable terms within our target ownership range.
• Sourced via our university relationships.  And the team itself comes together from both U of I and NU.

If you’re interested in joining please email me to discuss as soon as you can. Please note your investment will count towards your fund commitment and will be rolled into the larger fund at close.

@David C. & @Sam Y. for your immediate encouragement and support
@Brad H. and P33 for incubating this idea
@Peter B. for advising me as an emerging GP
@Gale W. for sharing all the things
@Steve M. for re-introducing me to Jessie and the great advice
@Jennifer S. for being my very first check in
@Kristi R. for being a fast second
@Jenny & Peter S., @Chris G., @Gary K. @Brittany G. for your early commitments
@Brylan for the introducing us to our first deal

We are targeting a Q4 first close.  Ideally around $15M-$20M. At the risk of stating the obvious, the number one thing that you all can do to help is make introductions to potential LPs.  More specifically, I’m hoping to meet:

• High Net Worth Individuals & Family Offices where the source of wealth was entrepreneurial activity in our state.  Think manufacturing, financial and legal services, food & CPG, logistics and transportation.
• Asset and Wealth Managers who are creating products specifically for next generation wealth or to appeal to the massive wealth transfer that is about to go to women.
• Founding teams beyond the CEOs of some of Chicago’s most successful businesses.
• Leadership teams at our largest asset allocators including PE, Hedge, & Investment Banks.
• Accredited investors who have not yet invested in venture funds (aka first time LPs)

 
Here’s a shareable blurb to make that easier.
 
Velocity Catalyst in a new $50M hyper regional hybrid fund incubated at P33 and led by Latina founder turned funder, Desiree Vargas Wrigley, of GiveForward, Pearachute, TechRise & The Josephine Collective.
 
Velocity’s differentiated Fund I simultaneously anchors emerging fund managers in <$50M funds focused on our state’s most critical industries and high potential pre-seed startups in those same industries, increasing the likelihood of outsized returns and more wealth and capital being reactivated into our economy.
 
Desiree and her team are targeting a first close this year and looking for introductions to investors who seek diversified exposure to Chicago & IL venture opportunities and who are interested in seeing Chicago accelerate from 10th to 3rd as a venture ecosystem. Here's a shareable deck.

Thank you all so much for taking the time to read this. I can't wait to update you on our progress over the coming months!

Warmly,
Desiree

P.S. Before some of you stress, we're doing 506c :)