Madrona Capital just hit a major milestone—closing its biggest fund ever at $770 million. As the Seattle-based venture firm celebrates 30 years in business, this latest haul shows investors are still confident in its vision, even as many other VC funds are scaling back.

This new fund is an 11% increase from the $690 million Madrona raised in 2022, a notable boost in a tight market. The managing director, Matt McIlwain, explained that the firm’s recent success in selling portfolio companies played a big role. For example, Lexion was acquired by Docusign for $165 million, and Octo AI went to Nvidia for $250 million. These wins helped reassure investors, who are increasingly focused on returns and capital distribution.

Madrona’s roots trace back to 1995, when it invested in a little-known online bookstore—Amazon. Since then, the firm has grown into a powerhouse, backing companies like Redfin, Smartsheet, and Snowflake. More recently, it’s been diving into AI startups, including Typeface and Runway.

In 2022, Madrona expanded beyond Seattle, opening an office in Silicon Valley to tap into the region’s tech ecosystem. The new $770 million fund will focus on AI applications in areas like travel, life sciences, and infrastructure. About $490 million will go toward early-stage startups, with the rest supporting later-stage Series B and C rounds.

Looking ahead, Madrona is feeling optimistic. McIlwain sees a “risk-on mindset” taking hold, which could drive more innovation and value creation in the years to come. With three decades of experience and a fresh pile of capital, Madrona is ready to keep shaping the future of tech.