AlleyCorp Closes $335 Million Second Fund After 2024 Debut

AlleyCorp raised a $335 million second fund, the firm told Fortune. The venture firm originally founded by Kevin Ryan as a family office in 2007 took outside investors for the first time in 2024 with a $250 million fund. Previous AlleyCorp investments have generated an all-time 60% IRR, according to a source familiar with the firm’s financials.

Ryan said the firm’s approach has not changed despite shifts in the broader venture landscape. “We just invested last week in a company [at] a $25 million valuation, and they have $500,000 in revenue so far,” he said. AlleyCorp focuses on healthcare, deep tech, and general tech and holds eight unicorns in its portfolio, including Rogo, ShopMy, Valar Atomics, and Thyme Care.

Ryan, who cofounded MongoDB, Business Insider, Gilt Groupe, and Zola, also backed Transcend Therapeutics, a psychoactive drug company that sold in June for $1.2 billion. He became a supporter of the Yale Center for Psychedelic Research after reading Michael Pollan’s book in 2018.

“What I think about is where the world’s going five to ten years from now, and then we need to make a bet when it’s not obvious,” Ryan said.

Ryan distinguished large AI investments from traditional venture capital. He noted that $412.7 billion in U.S. venture dollars deployed in 2026 so far have gone into just a few companies. “I don’t think that’s venture capital,” he said of funding for firms such as Anthropic and OpenAI.

Ryan said he remains devoted to early checks and young companies, though he left open the possibility that the next fund could reach $500 million or $600 million. The AlleyCorp Building in New York’s Nolita opened in June and now houses companies and other venture firms.