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Tech Topics In This Article: venture capital, Atlanta VC funds
Despite a challenging investor market, Atlanta-based Valor Ventures just closed its $27 million Fund 3.
The seed-stage venture capital firm, which backs B2B AI and SaaS startups across the South, closed the round with the backing of “notable new investors, including a pension fund, a bank and an RIA, alongside dozens of returning investors,” according to a press release.
Fund 3 is 28% larger than Valor’s prior fund.
New VC funds have been difficult to close across the country, given high interest rates, tightening liquidity, limited LP risk appetite, and longer exit timelines. Closing the new fund was an “immense challenge and a powerful validation of our strategy,” Valor’s Founding Managing Partner Lisa Calhoun told Hypepotamus.
“The number of active VC investors in the U.S. has dropped more than 25% from its peak in 2021, and for emerging managers like Valor, the decline is closer to 40%, according to PitchBook. This contraction has concentrated capital in the hands of a few — just 9 VC firms controlled over half of all capital raised last year, with 81% of total funds going to established firms, primarily those managing $500M+ funds,” added Calhoun. “Valor’s investor community, which we call the Community of Courage, understands that true value creation happens where conviction meets opportunity. We are honored to have the backing of investors who see what we see: Seed-stage B2B AI and SaaS startups in the South are an extraordinary, overlooked opportunity. Our strategy is simple: back the best founders in this region and build an ecosystem where they can thrive.”
Valor has already deployed capital from the fund, backing Southeast-based startups Autonoma (Birmingham), Acuity (Atlanta), Visalaw.ai (Memphis), and RueData (Chattanooga).
With Fund 3, Valor is also expanding its reach by adding 11 venture partners across Georgia, Virginia, North Carolina, and Florida, who are joining to better help support founders.
Aurelia Flores, Investment Director for Fund 3 investor VIPC’s Virginia Venture Partners, added that they joined the fund given its “ability to identify and nurture groundbreaking startups” and its forward-thinking approach to finding and working with startups.
“Their innovative use of AI, along with unique event-based prospect cultivation and vetting with downstream investors, sets them apart as one of the most progressive funds we’ve encountered,” Flores added in a statement.
Alongside deploying new capital from Fund 3, Valor is also growing its platform with the launch of the Valor Masterclass Series for founders. Established programs like Startup Runway — backed by Cox Enterprises, The American Family Institute, Georgia Power, NCR Foundation, and the National Science Foundation — continue to grow, alongside Valor’s flagship Atlanta Startup Podcast.
Investing In “The Wisdom Economy”
Given Calhoun’s front-row seat to the changing startup landscape, we asked her what big trends she and the Valor team are following in 2025.
Her answer: The shift from the “knowledge worker economy to the wisdom economy.”
“For decades, SaaS has been about accessing information—structuring it, moving it, making it accessible, putting it in a transparent process or package. But now, thanks to genAI, knowledge is becoming a commodity. The next layer of value lies in wisdom—the ability to apply knowledge with expertise and nuance,” Calhoun added. “This is why we invest in companies that empower professionals to achieve greater impact, faster. Our focus is on AI startups that don’t just automate processes but enhance decision-making, elevate human capacity synergistically, and transform industries.”