Patron, a California-based venture capital firm specializing in early-stage investments across gaming, consumer, and Web3 sectors, has successfully closed its second fund, raising $100 million. The firm was founded by Brian Cho, a founding member of a16z’s investment team, and Jason Yeh, a former executive at Riot Games. Amber Atherton, whose Y Combinator-backed startup was acquired by Discord, has joined as a Partner.
Notable Investor Support
Fund II has gained substantial support from prominent investors, including:
- Marc Andreessen and Chris Dixon (Andreessen Horowitz)
- Fred Wilson (Union Square Ventures)
- Garry Tan (President of Y Combinator)
- Ron Conway (Founder of SV Angel)
- Mitch Lasky (General Partner at Benchmark)
Investing in the “Gaming-Native Generation”
Patron’s investment strategy centers around the “gaming-native generation,” individuals who have grown up with platforms like Roblox and Discord as core elements of their online experience.
Brian Cho emphasizes that this demographic is the first truly gaming-native cohort, spending significant time in gaming environments. Patron aims to capitalize on this trend by investing in startups that use gaming technologies to develop innovative products and services.
Building on Past Success
With Fund II, Patron aims to expand upon the successes of its initial fund, continuing its investment focus in gaming and technology. The new fund plans to allocate between $1 million and $4 million to 20 to 25 startups over a three-year period, mirroring the investment approach of its first fund.
A Timely Investment
The $100 million raise comes at a pivotal moment as the integration of gaming technologies into various consumer sectors gains growth. Companies across industries are exploring virtual spaces to engage with younger audiences and enhance consumer interaction.
For example, quick-service restaurants like Whataburger and Wow Bao are using popular games to attract customers. Fashion brands such as Vans and Valentino are releasing digital clothing and accessories in virtual environments.
Strong Foundation from Fund I
Patron’s successful closure of its maiden fund, which raised $90 million three years ago, provided a solid base for subsequent investments. The first fund focused on early-stage investments in 21 companies, many of which have achieved significant milestones.
Notable investments include:
Raid Base: A sandbox gaming studio that received further funding from Andreessen Horowitz
Kudos: An AI-powered smart wallet
Tonic Music: A platform for live-streaming music practice
