Diplo-backed Torch Capital has raised another $200 million, according to higher-ups, and the New York City-headquartered investment firm intends to put this sophomore fund towards “investing in the next generation of disruptive tech-enabled brands and platforms.”
Five-year-old Torch Capital unveiled the $200 million round (and, separately, “the launch of Good Weird, a beauty platform focused on enhancing natural beauty for all genders”) today. Founded by InsideHook co-founder and former music industry manager Jonathan Keidan, Torch touts itself as one of the Big Apple’s “top performing consumer tech funds” and says that it now has north of $400 million in assets under management.
The firm also took the opportunity to note that its backers include Goldman vet (and Crestview vice chairman) Bob Hurst, former 21st Century Fox CEO James Murdoch, iHeartMedia head Bob Pittman, and the initially mentioned Diplo. An investor in companies such as music-focused social platform Stationhead, Diplo was likewise on board for Torch’s initial fund, per The Information.
Moving forward, Torch will continue taking interests in businesses that are “transforming entire consumer verticals,” according to Keidan.
“Consumer markets remain one of the largest and most disruptable spaces in the world,” Keidan, who’s said to have worked with acts including John Legend and The Dave Matthews Band, communicated in part. “As technology evolves, consumer behavior is constantly shifting, creating huge opportunities to build value in more parts of their lives than ever before. We back companies transforming entire consumer verticals, using technology to make products and services more accessible, transparent, and affordable.”
And on this front, Torch highlighted multiple “notable seed investments” for its second fund, including Little Otter (“one of the fastest-growing mental health platforms for kids and their families”) and Embed (“the next-gen clearing and custody platform”). Higher-ups further reiterated that the latter had been “recently acquired” but opted not to mention in their business’s formal release that the now-defunct FTX.US was the purchaser.
Additionally, Torch says that it’s invested “early” in startups like Naadam (a self-described “direct-to-consumer sustainable and ethical cashmere company”), Sollis Health (formerly Priority Private Care), and Lili Bank.
While Diplo didn’t appear to have addressed the close of Torch’s second fund at the time of this writing, the 44-year-old recently took to Instagram to celebrate his participation in the Los Angeles Marathon. Separately, the Diplo artist remains embroiled in a legal battle with an alleged stalker, and a related trial is reportedly scheduled to take place later this year.