Marin Sonoma Impact Ventures Closes $11 Million Fund II to Back North Bay Startups

Marin Sonoma Impact Ventures (MSIV), a regional venture capital firm focused on startups in California’s Marin and Sonoma counties, has closed its second investment fund with more than $11 million in capital commitments.

The closing of MSIV Fund II marks a new phase in the firm’s strategy of supporting local entrepreneurs and strengthening the North Bay Area’s startup ecosystem through community-backed venture capital.

The fund attracted commitments from 60 limited partners, with 98% of the capital coming from residents and institutions based in Marin and Sonoma counties.

A majority of the largest investors in MSIV’s inaugural fund also committed capital to Fund II, reflecting continued support for the firm’s regional investment strategy.

Among the investors is the Redwood Credit Union Community Fund, which committed $1 million to the new vehicle.

“MSIV Fund II will build on the success of our debut fund and further advance our ‘Invest Local’ movement,” said Zachary Kushel, Founder and Managing Partner of Marin Sonoma Impact Ventures.

“We are the only fund carrying a mandate to back the most promising entrepreneurs across Marin + Sonoma counties, and I’m eager to roll up my sleeves and help visionary local founders build the next cohort of great North Bay companies.”

MSIV was established to address a gap in venture capital availability for entrepreneurs operating outside the Bay Area’s traditional technology investment centers.

The firm focuses exclusively on identifying and supporting promising startups in Marin and Sonoma counties, connecting local founders with investment capital and regional business networks.

Its investment approach emphasizes building businesses within the North Bay while encouraging local residents and institutions to participate in the region’s entrepreneurial economy.

The closing of Fund II coincides with the fifth anniversary of MSIV Fund I’s initial closing.

Since launching its venture capital investment activities, MSIV has attracted support from 93 limited partners and deployed more than $8.66 million into 22 startups across Marin and Sonoma counties.

The firm’s first fund is now fully invested, with capital deployed across 13 companies.

MSIV Fund II has already completed nine investments, demonstrating that the firm began deploying capital before the fund’s final closing.

The second fund’s portfolio includes Gable, Lighthouse Pharmaceuticals, Lumo, OLarry, Skribe Medical and Your360 AI.

The investments reflect MSIV’s continued focus on supporting emerging businesses within its designated geographic market.

Redwood Credit Union’s participation represents one of the largest disclosed commitments to Fund II.

The credit union began supporting MSIV in 2022 as part of its broader commitment to local economic development and entrepreneurship.

“RCU began supporting MSIV in 2022 because we believed local entrepreneurs and innovators were essential to the well-being of our communities,” said Brett Martinez, President and CEO of Redwood Credit Union.

“What we’ve learned is that investing locally does more than help individual businesses succeed – it strengthens the network of jobs, ideas, and opportunity that allows an entire region to thrive.”

Martinez said the continued partnership reflects the potential for locally directed investment capital to support business formation, employment opportunities and long-term regional economic development.

The Redwood Credit Union Community Fund’s $1 million commitment also highlights the role regional financial institutions can play in expanding access to early-stage financing.

For MSIV, the second fund provides additional capital to invest in local companies while building on the relationships established through its inaugural investment vehicle.

The firm has positioned its community-based fundraising model as an alternative to venture capital strategies that primarily concentrate investment activity in larger technology hubs.

By raising nearly all of Fund II’s capital from local investors, MSIV aims to create a closer connection between the region’s financial resources and its emerging businesses.

The fund’s initial nine investments also provide a foundation for additional portfolio development as MSIV continues identifying startups across Marin and Sonoma counties.

With more than $11 million committed to Fund II and over $8.66 million invested across its broader portfolio to date, Marin Sonoma Impact Ventures is expanding its role as a dedicated source of venture capital for North Bay entrepreneurs.

The final closing positions the firm to pursue additional investments while advancing its strategy of supporting locally founded businesses and encouraging regional economic growth.