Interplay Raises $45M for Third Fund Targeting B2B Marketplaces and Vertical Software
Interplay, a New York-based venture capital firm, closed on its third fund with $45 million in capital commitments. The firm, focused on investments at the Series A stage, deploys capital into software, including B2B marketplace and vertical software. The new fund is a continuation of the firm’s prior two early-stage funds. We previously covered Interplay in 2022 when it was raising a separate vehicle. Within the marketplace industry, Interplay sees companies digitizing areas that had not yet entered that stage simply because the economics previously did not make sense, Mark Peter Davis, Interplay founder and managing partner, told TechCrunch. “The overarching trend is we see a major shift towards specialization, happening particularly over the last decade. These horizontal platforms have become more and more tailored and specific to particular industries,” Davis said. “We’ve had a lot of success investing around this shift, and that’s the underlying thesis of this vintage.” In those prior funds, Interplay had what Davis called “an angel vintage.” What’s different with Fund III is that it’s institutional funds, with backing from fund of funds, family offices and founders within Interplay’s portfolio. Davis called out a few ways that Interplay stands out: The first is that limited partners and founders get the same team of general partners making investment decisions every fund vintage. The firm’s investment committee has now made over 50 deals. The second is its outsized value proposition relative to its check size. And the third is the studio which enables Interplay to incubate and start companies. To Davis, this expands its reach and creates deal flow. The new fund gives Interplay $150 million