The 81 Collection Closes $82M Fund II, Doubling Down on Profitable Founders

The 81 Collection has closed an additional raise for its second fund at $82 million — exactly double its 2021 debut vehicle — pushing the Chicago firm's assets under management past $145 million.

Fund II will back founder-owned services, manufacturing and other businesses in the physical economy. That's a deliberate bet against the venture mainstream: the firm targets sectors it says get comparatively little VC attention despite representing a substantial share of U.S. economic activity.

What's the actual check size and target profile?

The firm writes roughly $8 million to $10 million per company. Its targets generate $4 million to $20 million in annual revenue and are growing at least 40% a year — established, cash-flowing businesses, not pre-revenue bets.

The 81 Collection takes minority stakes, with a stated goal of being the first and last institutional investor a founder takes on. The emphasis is capital efficiency over growth-at-all-costs burn.

Fund II has already deployed capital into two companies:

• Uptiv, which runs technology-enabled infusion centers in Michigan
• Terra, an AI-native freight brokerage platform

Both illustrate the firm's thesis: apply technology to established services and operating businesses rather than chase pure software plays. The firm looks for businesses where disciplined cash-flow management and technology together can fund growth.

Who's behind the fund?

Founder and General Partner Vijen Patel leads the firm. He co-founded Pressbox, now Tide Cleaners, and grew it to 1,000 locations — a track record the fund's strategy draws on directly. He's joined by Co-Founder Alex Kirshenbaum and former Tide Cleaners Chief Operating Officer Jeff Jasurda.

The advisor bench includes Scott Malpass, former chief investment officer of the University of Notre Dame. The firm also leans on a community of investors and operators who have built businesses in its target sectors.

DNS Capital, which backed the first fund, returned for Fund II. Brian Stal, Director of GSD at DNS Capital, said: "What sets The 81 Collection apart is investment from and access to a community of operators who have built and run the kinds of companies the firm backs. That experience matters to founders, and it is just one of many reasons why we were glad to support Fund I and are excited to invest in Fund II."

What does this change for founders outside the VC mainstream?

Patel's framing is blunt. "We think that most venture capitalists fund companies that might work. We back the ones that already do," he said. "I co-founded Pressbox, now Tide Cleaners, and grew it to 1,000 locations using cash flow. For the 81% of businesses that don't fit the traditional venture capital model, capital efficiency is an advantage, not a limitation."

He added: "The best funding comes from your customers, and that also makes businesses last. Until about 40 years ago, that's how most companies were built. We've just forgotten."

For founders running profitable services or manufacturing businesses growing 40%-plus a year, the practical takeaway is simple: there's now $82 million of institutional capital explicitly structured for you — minority stakes, roughly $8-10 million per deal, and no pressure to take a second institutional investor later. That's a materially different term sheet than a typical venture fund chasing majority control or endless follow-on rounds.

The doubling from Fund I to Fund II signals LP appetite for the physical-economy thesis. With two deals done and DNS Capital re-upping, expect the firm to keep hunting where venture capital doesn't.