1855 Capital Partners

What 1855 Capital Partners does

1855 Capital Partners is a Pennsylvania-based seed and early-stage venture capital fund founded in 2016 and headquartered in State College, PA, in close proximity to Penn State University Park. The firm invests in startups with ties to Penn State—drawn from current faculty, staff, students, and a 600,000+ member alumni network—across information technology, advanced materials, fintech, edtech, and healthcare/medical devices. Although privately owned and not directly affiliated with Penn State, 1855 Capital leverages deep community roots, including Penn State's role as a limited partner, to source, mentor, and capitalize early-stage companies. The firm manages two vehicles: the original 1855 Capital Fund I ($10 million, deploying $100K-$500K per company) and the newly formed Keystone Innovation Fund II ($30 million, deploying $250K-$750K), the latter operated as a strategic alliance with White Rose Ventures and Ben Franklin Technology Partners.

The firm's investment approach is operator-led, headed by Managing Director Matt Rhodes, a former CEO of Teranetics (where he raised $45M) and President of Conexant Systems (a $1B+ semiconductor business). 1855 Capital has invested approximately $7 million across 15 portfolio companies to date and reports attracting over $75 million in co-investment capital at a 10:1 leverage ratio, approaching $100 million in total investment mobilized across the portfolio. Two portfolio exits are disclosed: Bliley Technologies (acquired by KYOCERA AVX in October 2023) and Data Inventions.

Revenue is generated through the standard venture fund model—management fees on committed capital plus carried interest on successful exits. Distribution is direct: the firm engages Penn State faculty, students, alumni, and partner organizations (including Ben Franklin Technology Partners) to source deals, and typically leads or co-leads investment rounds. The portfolio spans sectors and stages from cognitive training technology (Reflexion) and agricultural nutrient management (Phospholutions, Croptix, 5Metis) to materials science (spotLESS Materials, Magnitude Instruments), data analytics (Daasity), and edtech (TEAMology), reflecting a broad sector mandate anchored to Penn State's research output.

Name

1855 Capital Partners

Legal name

1855 Capital Partners

Website

https://1855capital.com

Company type

Private

Founded year

2016

Operating status

Operating

Headcount range

1–10 employees

Short description

1855 Capital Partners is a State College, PA-based seed and early-stage venture capital fund founded in 2016, investing in Penn State University-affiliated startups across IT, advanced materials, fintech, edtech, and healthcare sectors.

Ownership category

akta.pro rank

Product category

Venture Capital

NAICS

Portfolio Management and Investment Advice (523940), Portfolio Management and Investment Advice (52394)

SIC

Investment Advice (6282)

akta.pro primary industry

Early-Stage Venture Capital (Series A/B) (FSANAAAB)

akta.pro secondary industry

Sector-Focused Venture Capital (Vertical Specialists) (FSANAAAD)

Keywords

• Seed venture capital
• Early-stage investing
• University affinity funds
• Technology venture capital
• Startup funding

Headquarters

HQ city

State College

HQ country

United States

HQ region

North America

Offices1 record

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Technology or R&D

Revenue model

1. Venture Capital Returns: Generates returns through equity investments in early-stage startups, primarily exiting via acquisitions. Revenue comes from capital gains on successful portfolio companies.

Pricing tiers

Go-to-market motion1 record

Distribution channels1 record

Marketing channels4 records

Core offering

1855 Capital Partners is a privately owned and operated seed and early-stage venture capital fund that invests in startups with ties to Penn State University. The firm manages 1855 Capital Fund I (a $10 million fund with $100K-$500K investments) and the Keystone Innovation Fund II (a $30 million partnership with White Rose Ventures and Ben Franklin Technology Partners with $250K-$750K investments) targeting information technology, advanced materials, fintech, edtech, and healthcare/medical devices sectors.

Product overview

1855 Capital Partners operates as a venture capital firm managing two investment funds: the 1855 Capital Fund I ($10 million seed/early-stage fund) and Keystone Innovation Fund II ($30 million fund in partnership with White Rose Ventures and Ben Franklin Technology Partners). The firm focuses on Penn State University-affiliated startups across information technology, advanced materials, fintech, edtech, and healthcare/medical devices sectors. Their investment strategy centers on companies with identifiable core technological competencies, scalable business models, and management teams, with typical investment sizes ranging from $100K to $500K for Fund I and $250K to $750K for Keystone Fund II.

Differentiator

Problem solved

Functional benefit

Products and services

• 1855 Capital Fund I A $10 million seed and early-stage venture capital fund providing $100K to $500K investments to Penn State-affiliated startups in sectors including information technology, advanced materials, fintech, edtech, and healthcare/medical devices. Expected ownership share of 10%-50% per portfolio company.
• Keystone Innovation Fund II A $30 million venture capital fund in partnership with White Rose Ventures and Ben Franklin Technology Partners, investing $250K-$750K per company in early-stage technology companies across Pennsylvania.

Quantifiable outcome

• 10:1 investment leverage - portfolio companies have attracted over $75M in co-investment capital against ~$7M invested by the fund

Named customers10 records

Segments1 record

Ideal customer profiles2 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Three partnerships are on record, tiered core and minor.

• White Rose VenturescoreStrategic or Co-development Partner · 10 May 2026Partner in Keystone Innovation Fund II, a $30M capital alliance combining networks, deal flow, and operational expertise of White Rose Ventures, 1855 Capital, and Ben Franklin Technology Partners to invest $250K-$750K per company in Pennsylvania early-stage technology companies.
• Ben Franklin Technology PartnerscoreStrategic or Co-development Partner · 10 May 2026Key partner in Keystone Innovation Fund II. Ben Franklin Technology Partners is Pennsylvania's most active pre-seed investor, providing early-stage funding, business and technical expertise, and access to statewide resources for portfolio companies.
• Cove FundminorStrategic or Co-development PartnerEarly-stage seed fund associated with UC Irvine that brought Daasity to 1855 Capital's attention. The Cove Fund model informed the design of 1855 Capital's university affinity fund structure.

Scale indicators7 records

Recent moves5 records

Expansion highlights5 records

Regional players

• Innovation Works: Pittsburgh-based seed-stage investor and one of the most active early-stage funds in Pennsylvania. Comparable as a regional PA seed investor with deep ties to a research university (Carnegie Mellon, Pitt), though at significantly larger AUM.
• Dreamit Ventures: Philadelphia-based early-stage venture fund with a healthcare/enterprise focus. Comparable as another Pennsylvania-based early-stage investor, though not university-affiliated and historically broader in sector focus.
• Central PA Angel Network: State College, PA-based angel investor network that frequently co-invests in the same central Pennsylvania startups that 1855 targets. Comparable geography and deal-flow overlap.

Direct peers

• Ben Franklin Technology Partners: Pennsylvania's most active pre-seed investor, providing early-stage funding and business/technical expertise. Co-GP in Keystone Innovation Fund II with overlapping deal flow, geography, and stage focus, making it a direct strategic peer.
• Osage University Partners: University-affiliated venture fund that invests in startups commercializing research from partner universities. Shares 1855's thesis of sourcing proprietary deal flow from university ecosystems and faculty research.
• Rev1 Ventures: Columbus, Ohio-based seed/early-stage investor combining venture funding with startup services. Comparable in the university-affiliated regional seed fund model and hands-on portfolio support approach.
• Alumni Ventures Group: Large-scale university-affinity venture fund aggregator pooling capital from alumni of many universities. Closely comparable model to 1855 Capital's Penn State affinity thesis, scaled across 1,000+ portfolio companies.
• White Rose Ventures: York, PA-based early-stage venture fund focused on Pennsylvania startups, with a university-affinity component anchored to York College. Direct co-GP in Keystone Innovation Fund II alongside 1855 Capital, making it the most directly comparable peer.

Broad incumbents

• Safeguard Scientifics: Long-standing Pennsylvania-based technology and healthcare investment firm. Comparable in its PA concentration and growth-stage orientation, though it operates at a much larger scale and broader scope than 1855.

Emerging players

• Contrary Capital: University-focused venture fund backing student-led and alumni-affiliated startups. Comparable in its university-affinity thesis and student-entrepreneur sourcing model, though typically earlier-stage and more generalist.

Market position

Strengths4 records

Weaknesses5 records

Competitive moat4 records

Key risks3 records

Key highlights6 records

Customer concentration

• Xx.com/1855capital

Revenue estimate

Valuation estimate

Number of profiles

Profiles2 records

Subsidiaries1 record

Funding overview

Funding rounds

Investors

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments9 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about 1855 Capital Partners