Growth Factory Ventures Research
Investment Thesis
Growth Factory Ventures (GFV) is a Sacramento-based early-stage venture firm and venture studio. Its stated philosophy is "Engineering Wins": great companies are engineered rather than discovered, and capital alone does not create an advantage, systems do. The firm says it starts with signal, not pitches, meaning market shifts, founder insight, operator experience and real demand grounded in data. It then evaluates with conviction and chooses between two paths: invest, or build alongside the founder through its Venture Studio. The homepage describes the operating model as "Signal in, Evaluation with conviction, Invest or Build, Scale from zero to one." GFV believes startups are now AI-native by default, and that the old venture playbook no longer matches how companies are formed. Its memo (blog) argues that investors are still grading AI-native companies on outdated SaaS frameworks and that a 24-month window will redefine venture capital.
Stage Focus
GFV partners early. Its testimonials describe being the first institutional investor in a pre-seed company (OnSight Technology) and the portfolio is almost entirely pre-seed and seed. The firm does not publish a formal stage statement, so stage preferences are inferred from the portfolio and founder testimonials. Founders apply through the Pitch Protocol intake and the firm promises a fast, clear answer and the reason either way.
Check Size
No check size is published. Fund I was roughly $14M deployed (about 80%) across more than 65 companies according to the Sacramento Business Journal, which implies average initial checks well under $250K. No range is asserted here.
Lead Tendency
Not stated. Founder testimonials stress hands-on, in-the-trenches support and board participation, but the firm spreads small checks over a very large number of companies, so it is likely a frequent co-investor or small-check participant. Recorded as unknown.
Recent Activity and Fund Status
Fund I launched in 2021 and invested in 70+ companies from 2022 to 2025. GFV (the firm) launched in 2025 when Ali Mackani joined Mark Haney and Rick Spencer as a partner and co-founder, and Thom Schildmeyer joined later in 2025 as a partner. In August 2025 the Sacramento Business Journal reported GFV was raising a second fund at least double the size of the first. The About page states that in 2026 GFV launched Fund II, combining direct investment with venture building through its new Venture Studio. A PitchBook snippet lists its latest investment as App Orchid in June 2026. The homepage cites $22M+ AUM, 70+ portfolio companies, 35+ PEFs and 120+ active LPs. Fund status: actively deploying.
Portfolio Highlights
Exits include OnSight Technology (computer vision and robotics for utilities and solar, acquired by Nextracker, 2024) and Streamline (GovTech workflow and accessibility software, 2025). Highlighted companies are AdZen, AppOrchid, Azimuth AI (edge ASICs), Azra Games, CREE8 (cloud SaaS for creative production teams, listed under the studio), HuLoop and Kora Power (AI electrical panel and home battery). The wider list spans health tech (AmCyt, Intelvasc, HiDo Health, Symphony Diagnostics), GovTech (Plum Identity, Tracklight, Rep'd, Pulse Patch), HR tech (Humanly, JobPixel, Sparck, Talr), climate (Ascent Analytics, EV Life, Supersede, Volektra), marketplaces, food and ag, sports tech, and fintech.
Team
Rick Spencer is Managing Partner. Mark Haney, who sold physical security company Northern Video and hosted a Sacramento founder radio show, is General Partner. Ali Mackani is General Partner. Thom Schildmeyer is Venture Partner. May Kolchak is Senior Associate and Taylor Sutton is Associate. Farzad Nazifi and Josh May are Studio Partners. The platform team also includes design, program management, AI automation, AI-native engineering, growth and product roles.
Decision Process
Partnership of the managing and general partners, with a studio track for co-building. The firm describes a process designed to move fast.
Founder Preferences
"Experienced builders with conviction." Founders who want a partner that builds with them and who can use the "Backyard Advantage," GFV's Sacramento and Northern California network of 120+ LPs, partners and co-investors.
Geographic Focus
Rooted in Greater Sacramento ("The Backyard"), now explicitly extending the Backyard Advantage to more regions. Portfolio companies are mostly US, with a Sacramento and Northern California concentration.