Seva Growth Raised $160 Million for Second Fund
The Williamsburg-based firm exceeded its fundraising target for a new pool of capital in September 2026.
Updated on Oct. 8, 2026 in Startups
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Seva Growth secured $160 million for its second fund following an oversubscribed fundraising round that concluded in September 2026. This figure marks a significant increase from the firm's inaugural $85 million fund, which closed in 2023.
Why it matters
The firm provides minority preferred equity investments to founder-led tech companies, targeting businesses with revenue between $3 million and $20 million. By bypassing traditional placement agents, the startup aims to streamline capital commitments directly from institutional investors and founders.
Institutional investors provided 75% of the total capital commitments for the new fund. The firm now plans to execute seven to nine minority preferred equity investments, targeting annualized growth rates of 40% to 100% among its portfolio companies.
The players
Seva Growth
This investment firm is headquartered in the Williamsburg neighborhood of Brooklyn and specializes in minority preferred equity for tech companies.
Accolade Partners
Based in Washington, DC, this investment organization has committed capital to both of Seva Growth's funds.
The details
Operating from an office in Williamsburg with two full-time employees, the firm structures its investments as convertible preferred stock with a 1x liquidation preference. It intends to hold these investments for four to six years with a target return of three to five times the invested capital.
Timeline
The firm's first fund closed in 2023.
Seva Growth closed an investment in Serif Health in July 2026.
Fundraising for the second fund began in the second week of August 2026.
Fundraising for the second fund concluded in the second week of September 2026.
Market Landscape
Seva Growth's expansion reflects the broader trend of lean, founder-led venture capital firms capturing increased market share with minimal staff. By scaling its fund size while maintaining a compact operational footprint, the firm strengthens its positioning against larger, more traditional investment houses.
For founder-led tech companies in the $3 million to $20 million revenue range, this funding increases the availability of minority preferred equity investment options. Prospective portfolio companies can expect a structured investment process involving convertible preferred stock and long-term partnership goals.
The takeaway
This successful fundraising highlights the continued appetite for specialized, lean investment vehicles that focus on high-growth technology companies. Entrepreneurs seeking capital should note the firm's specific preference for convertible preferred stock and its multi-year investment horizon.
Further reading
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