Small Wonder, a hair care company founded by another former Target executive, is among the businesses funded by Ocampo Capital’s first fund.
Photo courtesy of Small Wonder
A former Target executive aims to supercharge the venture capital scene in the upper Midwest with a new fund targeting consumer product companies.
Karl Bracken, a more than 14-year veteran at Target Corp. and founder of California-based investment firm Ocampo Capital LLC, on Wednesday formally announced the launch of his firm’s first $6 million fund. Though he’s looking at startups around the country, Bracken says he sees a clear opening to invest in Minnesota firms. “It’s very starved of venture capital,” Bracken says of the Twin Cities. “There’s a real opportunity here.”
He aims to invest the money in startups working in health and wellness, beauty, food and beverage, pet care, and personal care. Bracken also plans to invest in companies developing “supporting technology and infrastructure to enable the next generation of consumer experiences,” he says.
A native of northern California, Bracken first found himself in the Midwest when he moved to Chicago to earn his MBA from Kellogg School of Management. He moved again after that, this time to work as a buyer for Target, where he rose through the ranks and eventually specialized in merchandising.
These days, Bracken splits his time between his home in Los Angeles and a condo in St. Louis Park.
During his time at Target, Bracken says he saw many early-stage consumer companies come through with promising products, but they just couldn’t find a way scale their operations. “They would get purchase orders, high-five each other, and leave,” he says. “But they’d come back later and say they can’t fill those purchase orders.”
Bracken thought: What if those companies were better funded? That was the start of Ocampo Capital, which he officially launched in 2023. The firm is named after the street he lives on in the Pacific Palisades. He then spent much of the next year finding investors willing to chip in. Just about 20% of the limited partners, or LPs, in the first fund are “domiciled in the Twin Cities,” Bracken notes.
And though the fund was formally announced Wednesday, Bracken has already started investing. So far, Ocampo has invested in seven startups, two of which were founded by fellow former Target executives: sports education company Future Fans and hair care maker Small Wonder. None of the seven companies are based in Minnesota — about half are based in California and half are in the Midwest — but Bracken says he’ll be making a “sincere effort” to invest in some. In total, Bracken aims to fund about 12 to 14 companies from the first fund.
Bracken notes that he’s taking an active role in the companies he invests in. “I do get very involved in operations to help these companies scale,” he says.
News of Ocampo Capital’s first fund comes not long after fellow early-stage VC firm Bread & Butter Ventures announced its fourth fund worth about $40 million.
It’s worth noting that if you’re a non-tech startup, it’s a tough time to raise venture funds. Bracken pointed to the National Venture Capital Association’s most recent annual report, which showed that just about 40% of 2023 VC dollars flowed to software-related firms. Only 6% went to companies working in consumer goods and services.
Consider, also, the fate of local food startup Quebracho Empanadas, which folded in August despite winning the food division at MN Cup in 2023. “We found a white space and validated it with retailers,” founder Belén Rodríguez told TCB in fall. “But in CPG [consumer packaged goods], you need capital.”
AI — more than consumer brands — evidently continues to capture investor interest, but Bracken says there’s plenty of opportunity in the market for consumer brands.
“We still have lots of great consumer companies getting founded,” Bracken says, “they’re just having a harder time getting funded.”
