The interview below is part of a series from the McGuireWoods Emerging Manager Program featuring impressive emerging managers. The McGuireWoods Emerging Manager Program supports emerging managers throughout the most critical stages of a fund’s evolution.

‍

March 10, 2025

‍

Q: What led to the decision to raise your first fund?

Constance Freedman: In 2008, I began building my track record at Second Century Ventures, the predecessor fund to Moderne Ventures. It was the first time I had a long-term vision — one that spanned five to 10 years — and I knew I wanted to build a foundation and spin out to start my own firm.

That vision became a reality in 2015, driven by the opportunity I saw in industries such as real estate, finance and insurance. These industries made up more than 20% of U.S. gross domestic product but were largely untouched by technology. It was clear that innovation could transform these sectors in a meaningful way.

When launching Moderne, I knew it was critical to take a value-add approach to venture investing. And one of the best ways to add value is to bring customers to our portfolio companies. We adopted a programmatic, strategic approach — not just by identifying innovative businesses but by actively helping them gain traction and grow through meaningful industry collaboration. That concept evolved into a program we call Moderne Passport, which remains a core part of how we drive growth for our portfolio companies by delivering tangible, customer-driven results. Through this program, we leverage our network of 1,500-plus corporations and industry executives to create valuable connections, foster collaboration and accelerate growth for the companies we support.

Q: How does Moderne focus on companies that can transform the way businesses operate?

CF: The Moderne team looks at companies from two perspectives. First, we consider transformative technologies such as robotics, AI, digital transactions and connectivity — innovations that can fundamentally change how business is done. Second, we focus on the practical impact of these technologies, such as workforce optimization, lead generation and enhancing customer experience. If a technology can’t move the needle for a large corporation, it’s not worth the investment. Cool technology alone isn’t enough. We look for solutions that drive real, measurable outcomes. We marry these two perspectives — cutting-edge innovation with tangible business impact — to guide our investment decisions.

Q: What excites you most about today’s venture capital environment?

CF: I’m most excited about the opportunity to invest in ventures in 2025, which could shape up to be one of the strongest vintages in decades. Valuations are favorable for investors, and deal activity is on the rise. This makes me enthusiastic about Moderne’s growth fund, which strategically doubles down on the companies that have proven themselves and are well positioned for growth. It’s a chance to capitalize on market conditions, provide additional capital to our highest growth portfolio companies and support their scaling efforts at the right time.

Equally compelling is the opportunity for Moderne Growth Fund to invest in new late-stage deals. Late-stage investing offers the chance to back companies with strong market traction, clear revenue models and proven leadership teams — businesses that are at an inflection point at which strategic capital can accelerate their path to category leadership. In today’s market, when many exceptional companies are undervalued due to broader economic conditions, we see a unique and timely opportunity to invest in high-growth businesses poised for long-term success, especially with the help of our Moderne Passport program.

Q: What do you foresee with respect to limited partners’ (LPs’) willingness to invest with emerging managers?

CF: While most LP dollars continue to flow toward the largest managers, I believe smart LPs want to invest with funds that generate the best returns, regardless of size. At Moderne, we’ve been prioritizing differentiation and value-add approach to drive outsized returns for the last 17 years, and that remains a core part of our success today.

Our investment approach is positioned to resonate with LPs seeking innovative, high-potential opportunities. Our access to proprietary deal flow, stemming from deep industry relationships and our strategic network, gives us an edge. We don’t just follow trends; we invest in the intersection of innovation and real-world application, particularly in sectors such as real estate, insurance and broader financial services where technology adoption is accelerating.

Our disciplined investment process and focus on tangible outcomes have consistently delivered strong performance. LPs that partner with us understand that we bring not just capital but a robust, value-creation mindset to every portfolio company. In an environment in which emerging manager programs are gaining traction, our ability to identify and scale transformational companies sets us apart.

‍