Insurance is the critical infrastructure of the modern economy — everything depends on it. The risk economy spans financial services, healthcare, insurance, real estate, and the technology layers underneath, roughly half of GDP.
The operating system of the risk economy is being rewritten. Across underwriting, distribution, claims, services, and the systems that connect them, the way businesses get built is changing in front of us. Fund II is positioned for that change.
Crystal Venture Partners writes early institutional cheques and holds a small number of positions per fund. Fund II will hold fifteen, sized to be material to a $100M fund. Reserves are pooled and deployed selectively into the companies that earn the next dollar, rather than spread pro-rata.
Terms are designed for alignment: 2.5% management fee, 20% carry, European waterfall with clawback, no preferred return or hurdle. The strategy for Fund II is unchanged from Fund I.
$33M fund, 2024 vintage, final close September 2025. Eleven portfolio companies; we led or co-led every investment, with top-tier institutional investors following in subsequent rounds. Year-end 2025 audited net IRR: 67%.
Fifteen portfolio companies. Three check sizes. Forty-one percent of net investable capital held in pooled reserves for selective follow-on.
Initial capital is deployed across three check sizes. The mix reflects different entry postures rather than ranked conviction — the optionality cheques carry the same diligence bar as the lead cheques.
The $31M reserve pool is not allocated pro-rata. Reserves are deployed into a subset of the portfolio based on post-investment evidence, rather than reserved against every position at entry.
Forward-looking projections from the GP's fund model. Base case assumes a 15% loss rate, a 6.1-year average hold, and an outcome distribution calibrated to historical seed-stage benchmarks (Correlation Ventures, Horsley Bridge).
Macro contraction; elevated mortality and compressed exits.
Central case. 15% loss rate, 32% of companies above 5×.
Stronger cycle; sector tailwinds lift winners.
Tail-driven; one or more breakout companies clear $1B in proceeds.
Projections are unaudited and forward-looking. Actual results will differ. Net of all fees, carry, and modeled fund expenses.
Full terms are in the Limited Partnership Agreement. Citations below reference sections of the W&S draft dated March 27, 2026.
Two partners and a chief of staff. Every Fund I investment was led or co-led by Crystal Venture Partners; each passed through both partners directly.
Founded Crystal Venture Partners in November 2022. Leads firm strategy and sourcing.
Leads investment decisions and portfolio engagement across Fund I and Fund II.
Runs firm operations and the LP relationship. First point of contact for fund administration.
Fund II is accepting first-close subscriptions through Q3 2026. Reach out for an introductory conversation or to request access to the data room.