About This Fund
Bonfire Ventures Fund III is a $168 million seed venture capital fund raised by Bonfire Ventures, a Los Angeles-based firm founded by Mark Mullen and Jim Andelman that specializes in backing B2B software companies at the seed stage. The fund closed at its cap on May 31, 2022 — deliberately oversubscribed — and deployed capital into 32 enterprise software companies through 2025, making it the third core fund in Bonfire's growing series.
Fund III focuses on seed-stage B2B software companies addressing large, underserved verticals including construction, healthcare, insurance, industrial operations, and established business categories ripe for digital disruption. Bonfire leads seed rounds with initial checks averaging $2.7 million at pre-money valuations of approximately $16.4 million, providing founders with early institutional conviction, board support, and go-to-market guidance. Fund III was deployed alongside a $63 million second opportunity fund for follow-on capital.
Fund III's early performance benchmarks have been exceptional: 73% of companies backed in the first investment year raised a Series A within 24 months, against a 15% industry benchmark, and the average portfolio company grew ARR by 337% from initial investment. All 32 portfolio companies remained active through the fund's close-out in 2025. These results directly supported the launch of Bonfire Ventures IV, a $245 million vehicle, confirming Bonfire's differentiated sourcing and selection model for seed-stage enterprise software.