New Stack Ventures Research Document
Executive Summary
New Stack Ventures is a Chicago-based early-stage venture capital firm founded in 2015 with a distinctive thesis: investing in "outsiders"—mission-driven, non-traditional founders operating in off-coast locations and building in contrarian sectors including hardware, deep tech, logistics, and legacy industries. The firm has raised $48.7M across two funds (Fund I: $6M in 2018; Fund II: $42.6M in 2022) and has established itself as a systematic operator building dealflow through its founder network and The Full Ratchet, one of the earliest VC podcasts.
Investment Thesis
New Stack Ventures explicitly rejects the traditional Silicon Valley formula (Stanford/Google/Bay Area founders) in favor of supporting exceptional founders who don't fit the mold. The firm believes the next wave of transformational companies will be built by mission-driven founders working on real problems in industries overlooked by coastal VCs. This philosophy extends across their investment strategy: they seek founders with contrarian models, non-traditional backgrounds, and geographic diversity. Their recent activity shows particular strength in AI/ML applications, vertical SaaS, fintech, biotech, and deep tech solutions.
Stage and Check Size Focus
New Stack Ventures operates as a pre-seed and seed-stage focused fund:
Stages: Pre-Seed, Seed, Series A (selective) Check Size Range: $500K - $1.5M (typical sweet spot) Check Size Guidance: $5K - $1.5M (from VC Sheet data) Fund II Targets: $500K - $2M per investment (2022 announcement)
The firm typically leads or co-leads rounds and has built conviction with follow-on investment capability from Fund II reserves.
Lead Tendency and Decision-Making
Lead Tendency: Primarily leads (based on portfolio composition and announcement pattern) Lead Pattern: Co-leads frequently and has syndicate relationships through The Full Ratchet network Decision Process: Partnership-based (multiple partners involved in conviction-building) Decision Timeline: Estimated 2-4 weeks based on VC podcast culture and startup involvement model Warm Introductions: Preferred but not required (podcast audience provides broad awareness)
Recent Activity and Fund Status
Fund Status: Fund II actively deploying (raised 2022, currently in years 3-4 of deployment) Recent Notable Investments (2025-2026):
- January 2026: BioReact (AI-powered bioprocessing platform) - $1.07M pre-seed
- November 2025: Binsr Inspect (Arizona PropTech) - $1.1M pre-seed
- December 2025: Oscar AI (business/productivity software) - investment
- Ongoing: Digitt (fintech, Mexico) - Series A (participated)
Investment Velocity: 50+ portfolio companies to date; ~1 investment per month in recent period Notable Portfolio Successes:
- Light Frame, Ltd. (pre-seed follow-on, May 2024) - $1.7M co-led with ATX Venture Partners
- Multiple exits from Fund I (exact count not disclosed but mentioned in top decile performance)
Geographic and Sector Focus
Geographic Preference: United States, with emphasis on off-coast locations (Midwest, Mountain West, South) Headquarters: Chicago, Illinois Investment Geography: US-focused with occasional international consideration for mission-critical founders
Primary Sectors:
- Vertical SaaS & Enterprise Software - Marketplace, Health, SaaS solutions
- AI & ML Applications - Particularly in vertical domains (BioReact in biotech, Oscar AI in business productivity)
- Fintech & Payments - Digitt (Mexico), XILO (insurance fintech)
- Deep Tech & Hardware - Robotics, automation, aerospace-adjacent
- Climate & Logistics - Supply chain, sustainability solutions
- Biotech - BioReact (AI-powered bioprocessing)
- Proptech - Binsr Inspect (Arizona-based inspection tech)
Avoided Sectors: Consumer-only plays without defensible unit economics, pre-revenue with no traction path
Team and Decision-Makers
Founder & General Partner:
- Nick Moran - Founder, General Partner, Host of The Full Ratchet. Prior to New Stack: Danaher (M&A, Product Management). Education: University of Virginia (MBA '08, Darden). Known for building systematic dealflow through podcast and personal network. 15+ years in venture and operating roles.
Chief Operating Officer:
- J.R. Moran - COO. Attorney background (15+ years legal/VC experience). Angel investor with founder connections. Sweet spot: $750K, Range: $400K-$1.5M. Operational director and relationship builder.
Partners & Key Investors:
- Luke Skertich - Principal (joined June 2024). Prior: FJ Labs (July 2020-May 2024), M25 Venture Capital. UChicago Booth MBA. Operator background. Active in recent investments (Light Frame, BioReact).
- Ariella Frank - Associate (joined September 2023 as Analyst, promoted to Associate). Prior: Goldman Sachs (banking background). Barnard College. Recently promoted to Investor. Portfolio company liaison.
- Brenna Kyper - Team member (operational/operational partner)
- Nate Pierotti - Team member (investment/sourcing)
Team Size: ~8-10 person team including 3 Partners, 1 Venture Partner, 2+ Principals
Founder Preferences and Deal Characteristics
New Stack explicitly backs "outsiders" - founders who:
- Have non-traditional career paths (startup operators, career-switchers, non-Stanford/Google backgrounds)
- Come from off-coast locations (Chicago, Denver, Austin, Phoenix, etc.)
- Are mission-driven with deep conviction in their problem space
- Build in contrarian sectors with real customer pain points
- Have strong execution ability even with limited prior startup experience
Anti-Portfolio: Coastal VC "standard" founders, idea-stage companies without founder-market fit, teams without domain expertise, pure consumer plays without network effects
Decision Process and Involvement
Partnership Approach: Multiple partners review opportunities; consensus-based but Nick Moran drives final conviction Board Involvement: Typically take board seat or board observer (for their check size) Operational Support: Portfolio introduction to The Full Ratchet audience, operational support, growth guidance Investor Network: Systematic co-investor network including angels from podcast audience, other off-coast funds
Competitive Positioning
New Stack Ventures is positioned uniquely:
- As systematic operators: Building software including VC Rank and The Seeker (proprietary tools)
- As brand builders: The Full Ratchet podcast creates inbound dealflow and founder awareness
- As network aggregators: National network of outsider founders and investors
- As conviction builders: Top decile Fund I returns validate their thesis
- As co-investors: Syndicate relationships for follow-on rounds
Fund Size and Deployment Strategy
Fund History:
- Fund I (2018): $6M - exceeded top decile performance
- Fund II (2022): $42.6M - aims to back 35 startups
Current Deployment: Fund II in active deployment phase; expect 1-2 years remaining major deployment window based on 2025 investment pace
Check Size Strategy: $500K-$1.5M sweet spot allows them to lead small rounds but take meaningful ownership (15-20% for seed rounds)
Summary
New Stack Ventures has built a distinctive brand around backing mission-driven outsiders in off-coast locations. Their systematic approach combining The Full Ratchet podcast, proprietary software tools, and deep conviction in their thesis has created a differentiated competitor in the pre-seed/seed space. Fund II deployment is active with strong recent activity in AI, biotech, fintech, and proptech. The team combines founder and operator backgrounds with venture expertise, creating operational support credibility with portfolio companies. Decision-making is partnership-based but founder-led by Nick Moran, with established conviction patterns showing lead tendency and co-lead participation. Geographic focus on US off-coast locations and sector focus on deep tech, vertical SaaS, and mission-driven problem-solving align well with founders building defensible solutions outside standard coastal markets.