Madrona Venture Group — Investment Thesis & Preferences

01Investment Thesis

Madrona invests in people and ideas for the long run — backing visionary founders building transformational technology companies, with deep focus on applied AI across domain-specific applications, AI infrastructure, developer tools, enterprise software, and AI-enabled biotech. The firm serves as an active, full-stack partner providing capital plus recruiting, business development, and customer introductions.

Exclusion Criteria

No investments outside technology; avoids purely consumer hardware, media without tech differentiation, or non-tech businesses. Historically avoided companies not building in or leveraging Seattle/Pacific Northwest talent ecosystems, though this has loosened post-2022.

02Investment Team

MM

Matt McIlwain

Managing Director

SS

S. Somasegar

Managing Director

SJ

Scott Jacobson

Managing Director

KM

Karan Mehandru

Managing Director

TP

Tim Porter

Managing Director

SS

Steve Singh

Managing Director

CP

Chris Picardo

Partner

SA

Sabrina Albert

Partner

VR

Vivek Ramaswami

Partner

AC

Anna Chen

Investor

RF

Rolanda Fu

Investor

JH

Joe Horsman

Investor

RP

Rasik Parikh

Investor

TC

Troy Cichos

COO & Partner

MN

Mark Nelson

Venture Partner

OE

Oren Etzioni

Venture Partner

HC

Hope Cochran

Venture Partner

03F4 Research Brief

Madrona Venture Group Research

Overview

Madrona Venture Group is one of the Pacific Northwest's most storied and successful venture capital firms, founded in Seattle in 1995. The firm has been instrumental in building the Seattle technology ecosystem, having invested early in Amazon in 1995 and going on to back iconic companies like Snowflake, Redfin, Rover, Smartsheet, Deepgram, and Anthropic. With over 30 years of operation, Madrona has established itself as a go-to partner for technical founders building transformational technology companies, with a particular and deepening focus on applied artificial intelligence.

Investment Thesis

Madrona's core thesis is captured in the phrase "We invest in people and ideas — for the long run." The firm positions itself as an active, full-stack partner that rolls up its sleeves to help founders turn visionary ideas into transformational businesses. Rather than being a passive capital provider, Madrona takes board seats and provides recruiting support, business development introductions, and customer connections alongside capital.

In its current Fund X era (2025), Madrona is sharply focused on applied AI across multiple domains. The firm's stated investment focus areas include:

AI & Intelligent Applications — Domain-specific AI apps spanning travel, life sciences, and enterprise functions; agentic-first consumer and commercial solutions
AI-Enabled Biotech — The intersection of machine learning and life sciences
Consumer & Marketplace — Next-generation consumer applications, including AI-native consumer experiences
Data & Infrastructure — Platforms that remove friction between foundational AI models and end users
Deep Tech — Advanced hardware, sensors, robotics (e.g., Echodyne)
Developer Platforms & Tools — Infrastructure for software development, DevOps, cloud-native tooling
Enterprise Applications — Vertical and horizontal SaaS, workflow automation, business intelligence
Security — Cybersecurity, device security, enterprise security platforms

Stage Focus

Madrona invests across multiple stages through two complementary fund structures:

Fund X ($489.6M): Targets approximately 30 companies at pre-seed, seed, and Series A stages. This is Madrona's core early-stage vehicle, where it aims to be first institutional money and build multi-year partnerships with founders.

Acceleration Fund IV ($269.4M): Targets approximately 12 companies at Series B and Series C. This fund allows Madrona to back its best portfolio companies as they scale or to invest in breakout growth-stage opportunities.

Check Size

Based on historical investment data:

Pre-Seed: $500K–$2M
Seed: $3M–$8M (average ~$5M for seed-stage rounds)
Series A: $7M–$15M (average ~$10.5M for Series A rounds)
Series B/C (Acceleration): $15M–$50M (average ~$38.5M)

For Fund X, initial investments are expected to range from approximately $1M to $15M.

Lead Tendency

Madrona consistently leads rounds, particularly at seed and Series A stages. The firm is known for taking board seats and leading syndicates. At the acceleration stage, it may co-lead or participate as a strong follow-on investor.

Geographic Focus

Madrona is headquartered in Seattle and has historically had a Pacific Northwest concentration — as recently as 2015, over 90% of its investments were in Pacific Northwest companies. However, the firm has actively expanded its geographic reach:

Opened a Silicon Valley (Palo Alto) office in 2022
Now invests broadly across the US, with particular density in Greater Seattle and the Bay Area
Selective investments in Europe, Israel, and internationally

Recent Activity & Fund Status

Madrona is actively deploying from its newest funds (Fund X and Acceleration Fund IV), announced in January 2025 and representing $770M total — the largest fundraise in the firm's history. The firm made approximately 28 investments in 2025 and has already made 7+ investments in 2026 as of mid-year.

Recent 2025–2026 investments include:

Golden Analytics (April 2026, $7M Seed, co-led with NEA) — AI-native business intelligence platform
Ridge AI (April 2026, $2.6M Pre-Seed, led by Madrona) — Embedded analytics for SaaS apps, AI-native
Entire (February 2026, $60M Seed, co-led with Felicis Ventures) — AI-focused code management for human-agent collaboration; founded by former GitHub CEO Thomas Dohmke
Cofactory (2025) — B2A marketing platform for AI search, alongside Sequoia Capital

Recent exits (2024):

OctoAI — Acquired by NVIDIA for a reported $250M
Lexion — Acquired by Docusign for $165M
Rover — Acquired by private equity

Portfolio Highlights

Madrona has backed 19+ unicorns and has a deep roster of notable companies:

Historic Investments:

Amazon (early backer, 1995 — the defining investment establishing Madrona's credibility)
Redfin (IPO)
Smartsheet (IPO)
Impinj (NASDAQ: PI)
UiPath (co-investor)

Active High-Growth Companies:

Snowflake (IPO, mega-cap cloud data warehouse)
Anthropic (frontier AI research lab)
Cohesity (data security/management)
Deepgram (AI speech recognition)
SeekOut (talent intelligence, unicorn)
Statsig (feature flagging/experimentation, became unicorn in 2025 — acquired by OpenAI)
Typeface (generative AI content, unicorn 2023)
Runway (AI-generated video, unicorn)
Read AI (meeting productivity)
Coda (collaborative documents)
Highspot (sales enablement)
Branch (deep linking/attribution)
Amperity (customer data platform)
Common Room (community-led growth)

Team

Managing Directors:

Matt McIlwain — Co-founded the current Madrona management structure; focused on applied ML/cloud; early champion of Snowflake and Amazon Web Services ecosystem. LinkedIn: linkedin.com/in/matt-mcilwain
S. Somasegar — Former SVP of Developer Division at Microsoft (27 years); led investment in Snowflake, UiPath, Statsig; deep expertise in B2B/enterprise, developer tools, AI infrastructure
Scott Jacobson — Managing Director
Karan Mehandru — Joined 2022 from Trinity Ventures; broad enterprise focus
Tim Porter — Managing Director; focused on analytics and developer tools (led Ridge AI investment)
Steve Singh — Managing Director; enterprise and SaaS background

Partners:

Chris Picardo — Partner
Sabrina Albert (Wu) — Partner; co-wrote recent AI thesis essays
Vivek Ramaswami — Partner; focused on AI applications

Investors:

Anna Chen, Rolanda Fu, Joe Horsman, Rasik Parikh

Venture Partners (selective list):

Mark Nelson — Former Tableau CEO; focused on data/analytics
Oren Etzioni — Former Allen Institute for AI CEO; AI research expert
Hope Cochran — CFO background; board expertise
Sidd Srinivasa — Robotics expert, UW professor

Operations:

Troy Cichos (COO & Partner)
Jeff Mills (Investor Relations Partner)
Joanna Black (General Counsel)

Decision Process

Madrona uses a partnership/investment committee model. With 6 Managing Directors and multiple partners, investment decisions typically involve a proposal champion, diligence by multiple partners, and partnership vote. The firm is known for being deliberate but relationship-driven, often investing in founders over multiple years before a formal round.

Founder Preferences

Madrona prefers technical, mission-driven founders building in technology sectors where the Pacific Northwest has deep talent pools (cloud, enterprise software, AI). The firm has strong relationships with Microsoft and Amazon alumni networks. It backs founders at the earliest stages — including incubation through its Madrona Venture Labs — and describes its preferred founders as those who are "visionary" and building "transformational businesses." Strong preference for founders who can leverage Seattle/Pacific Northwest talent ecosystems.

Madrona Venture Labs

Founded in 2014 as an internal startup incubator, Madrona Venture Labs allows the firm to invest even earlier — at the idea stage — and co-create companies with technical founders. This distinguishes Madrona from most traditional VCs and reinforces its 'day one' investing commitment.