Rally Ventures Closes $240 Million Fund, Doubling Down on AI, Cybersecurity and Fintech

With over $1 billion in assets under management, Rally Ventures has just completed the final close of its latest investment vehicle—Rally Fund V, securing $240 million to back early-stage enterprise technology startups. This marks another significant milestone for the venture firm as it refocuses its investment thesis on three critical technology domains: AI/ML, cybersecurity, and fintech solutions.

A Track Record That Speaks Volumes

Since launching in 2012, Rally Ventures has built an impressive portfolio spanning multiple technology waves. The firm has backed 76 companies to date, with 19 successful exits including three IPOs. The roster of exits reads like a who’s who of enterprise tech: Braze, Coupa, and Carbon Black all went public, while others like UiPath, Twistlock, and Verodin were acquired by major technology players including Palo Alto Networks and FireEye. Beyond the headline exits, Rally’s portfolio includes strong performers like Arctic Wolf, Bugcrowd, and Harness.

Where Rally Fund V Will Deploy Capital

Rally Fund V targets three mega-trends in enterprise technology. The AI/ML investment thesis centers on companies that can deliver compound improvements in operational efficiency—the firm believes aggressive AI adoption can unlock order-of-magnitude performance gains that create lasting competitive moats. Cybersecurity remains a critical gap: despite industry progress, major vulnerabilities persist in how enterprises protect their systems and data. The fintech and SaaS+ opportunity focuses on companies embedding financial services—payments, lending, payroll management, and treasury solutions—directly into vertical-specific software platforms, disrupting the traditional financial services stack.

Reinforcing the Bench With Enterprise Tech Expertise

The Fund V close coincided with Rally Ventures bringing on Ben Fried, former Google CIO, as an addition to its investment team. Fried’s background in scaling technology infrastructure and cybersecurity at one of the world’s largest enterprises provides the team deeper conviction when evaluating AI-driven opportunities and emerging security threats. The expanded team now includes three managing directors, four venture partners, and seven investment professionals, supported by a network of over 100 Rally Tech Partners—accomplished operators, executives, and technologists who have themselves invested more than $130 million into Rally funds.

“We’re excited to have Ben join as we deploy Rally Fund V,” said Jeff Hinck, Co-Founder and Managing Director. “Companies that move fastest on AI adoption will create permanent advantages over competitors. Ben’s experience at the cutting edge of technology helps us separate real innovation from hype.”

Charles Beeler, another Co-Founder and Managing Director, emphasized the cybersecurity priority: “Enterprise cybersecurity is still largely unsolved. This will remain a top priority for organizations for the foreseeable future, and Rally is positioned to back the best defensive innovations.”

Managing Director Justin Kaufenberg highlighted the fintech opportunity: “Embedded fintech is fundamentally reshaping financial services. We’re actively seeking companies innovating in payments, lending, insurance, and the entire spectrum of embedded financial infrastructure.”