Patron, a California based VC focused on early-stage investments in the gaming, consumer, and Web3 sectors, has now secured its second fund, with a substantial $100 million in capital. Patron is founded by Brian Cho, one of the founding members at a16z’s investment team and Jason Yeh, a former executive at Riot Games. They are joined in by Amber Atherton as a Partner. Atherton’s Y-Com backed startup was acquired earlier by Discord.
Patron’s latest fund has attracted significant backing from a distinguished roster of investors, including the likes of Marc Andreessen and Chris Dixon from Andreessen Horowitz, Fred Wilson of Union Square Ventures, and Garry Tan, President of Y Combinator. Other high-profile individual investors such as Ron Conway, founder of SV Angel, and Mitch Lasky, general partner at Benchmark, also contributed.
“We’re excited to announce Patron Fund II, a $100M seed-stage fund dedicated to supporting founders building for the next generation of consumers. This new fund is shaped by our experience as early builders and investors at Andreessen Horowitz, Riot Games, and Discord, along with insights from the past three years since launching our first fund,” Brian Cho, co-founder and General Partner at Patron, wrote in a LinkedIn post.
Central to Patron’s investment thesis is the concept of the “gaming-native generation.” This demographic comprises individuals who have grown up with platforms like Roblox and Discord as integral parts of their online lives. Brian Cho, co-founder and general partner at Patron, says these consumers spend a significant portion of their online time in gaming environments, making them the first truly gaming-native generation. Patron’s strategy is to leverage this trend by investing in startups that harness gaming technology to create new products and services.
With the launch of Fund II, Patron – run by Cho, Amber Atherton, and Jason Yeh – aims to build on the successes of its first fund by continuing its investment strategy in gaming and technology. The new fund is set to invest between $1 million and $4 million in 20 to 25 startups over a three-year period (much like how it invested the proceeds from its first fund).
The $100 million raise for Patron’s second fund also comes at a time when the integration of gaming technologies into various consumer sectors is gaining momentum. Companies across industries are exploring virtual spaces to engage with younger audiences and drive consumer interaction. For example, quick-service restaurant chains like Whataburger and Wow Bao have launched initiatives within popular games to attract customers, while fashion brands like Vans and Valentino are releasing digital clothing and accessories in virtual environments.
The successful closure of Patron’s maiden fund, which raised $90 million three years ago, had provided the firm with a strong foundation for its subsequent investments. At that time, the first fund focused on early-stage investments in 21 companies, many of which have achieved significant milestones. Notable investments include Kudos (an AI-powered smart wallet), Tonic Music (a platform dedicated to live-streaming music practice), and Raid Base (a sandbox gaming studio that has received additional funding from Andreessen Horowitz).
