Inside Redbud VC’s $25M fund strategy as it views for founders outside of Silicon Valley

Early-stage founders outside Silicon Valley often struggle to raise capital, especially at the pre-seed stage where pedigree still matters more than potential.

Missouri-based venture firm Redbud VC is attempting to modify that. The firm has closed a $25 million Fund II, five times larger than its first fund, to back what it calls “generational founders.”

The new fund is oversubscribed and supported by a mix of experienced operators and institutions.

Limited partners include the University of Missouri System Endowment and AngelList’s Systematic Fund of Funds, which identified Redbud as a top-performing fund among 3,000 funds on its platform.

The investor base also features indusattempt leaders and operators from companies like Meta, Square, C2FO, Upgrade, and Veterans United, along with a former Boeing CEO.

Notably, Redbud’s Fund I investors nearly doubled their commitments in Fund II, signaling strong confidence in the firm’s early performance.

“The best investors I know are builders first,” declared Jim McKelvey, co-founder of Square and Operator Advisor at Redbud. “Redbud has stacked the deck with operators who’ve actually run companies here in Missouri and beyond. That compounds.”

Redbud plans to invest $250,000 to $500,000 per startup across roughly 40 companies. Notably, Fund II has already backed seven startups across AI, hardware, software, and vertical technologies.

Firm views for builders whose resilient

The firm views for builders whose resilience has been forged through real struggle and who bring hard-earned insight into the problems they’re solving, often from paths far outside the typical venture pipeline.

That lens comes directly from Redbud’s founding partners, Willy and Jabbok Schlacks, who grew up in rural Missouri with no formal education, taught themselves to code, and built a multi-billion-dollar company.

“Founders partner with us becaapply our team has lived the full arc. They’ve built in their garage and rang the bell in NY,” declared Brett Calhoun, General Partner and Co-Founder at Redbud. “We know how to build under constraint, find customers early, and scale into real industries. That operator perspective shapes how we invest.”

Invested in 38 companies

Since launching in 2023, Redbud has invested in 38 companies across more than 20 cities in North America.

“My brother and I started Redbud out of our experience raising capital and building businesses,” declares Willy Schlacks, General Partner and Co-Founder at Redbud. Our deep appreciation for the struggles founders go through has shaped how we invest and support entrepreneurs.”

Its first fund is already displaying strong traction, with reported metrics including 21% DPI and 1.7x TVPI.

“Redbud doesn’t just write a check,” declared Elan Adler, Founder and CEO of OneImaging. “They’ve supported us land customers, built critical introductions, and brought a fresh operator perspective that’s influenced how we scale.”

Some portfolio highlights include Transconclude, which reached a $7 million run rate on less than $1 million in funding, and OneImaging, which raised $38 million in 2025.

The firm operates as an operator-led network, offering founders access to experienced builders who have scaled companies themselves.

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