Gateway Capital Partners, the investment firm established by Dana Guthrie, revealed the initial close for its $25 million target Fund II earlier this week, as confirmed by the Milwaukee-based firm to TechCrunch. Gateway Capital opted not to disclose the specific amount of the initial close.

The initial close signifies that Fund II can commence its investment activities.

Guthrie mentioned that the firm started fundraising for its Fund II in the middle of last year. The average investment size for Fund II is projected to be between $500,000 and $600,000.

It will be industry-neutral, she noted, although there will be “a bias toward Midwest sectors that are ready for disruption,” including supply chain and logistics, as well as manufacturing AI. Guthrie expressed her intention to support at least 20 companies through this fund.

Founded in 2020, Gateway Capital previously secured a $13 million Fund I in 2020.