Cherryrock Capital Targets Overlooked Founders & Growth Markets in 2026

LONDON, February 15, 2026 — Silicon Valley's venture capital landscape is evolving, and Stacy Brown-Philpot is leading the charge with Cherryrock Capital. According to TechCrunch, the former TaskRabbit CEO and Google veteran launched the firm in response to persistent gaps in funding for underinvested entrepreneurs. Cherryrock Capital is shifting focus to Series A and B funding for software companies at pivotal growth stages.

Executive Summary

• Stacy Brown-Philpot, former TaskRabbit CEO, founded Cherryrock Capital in 2025.
• The firm focuses on Series A and B investments in overlooked software startups.
• Cherryrock addresses funding gaps for underinvested entrepreneurs in Silicon Valley.
• Brown-Philpot's leadership reflects a return to traditional venture capital principles.

Key Developments

According to TechCrunch, Stacy Brown-Philpot established Cherryrock Capital in 2025, aiming to create a more inclusive funding ecosystem for software startups. For more on [related ai developments](/openai-google-and-microsoft-expand-enterprise-ai-tools-24-01-2026). As Silicon Valley increasingly prioritizes mega-rounds and high-profile AI deals, Cherryrock is carving out a niche by targeting smaller Series A and B rounds for founders who are often overlooked by larger firms. Brown-Philpot, who spent a decade at Google and led TaskRabbit as CEO, has identified a persistent funding gap for underrepresented entrepreneurs in the crucial growth phase of their businesses.

Cherryrock Capital’s approach is reminiscent of early venture capital practices, emphasizing strategic investments in high-potential startups rather than chasing hype-driven valuations. This strategy could prove pivotal in addressing systemic inequities in the VC landscape, particularly for founders from diverse backgrounds or those operating outside traditional venture hubs.

Market Context

The venture capital industry has seen a dramatic shift over the past decade, with increasing focus on billion-dollar valuations and high-profile sectors like artificial intelligence and fintech. However, this focus has left many software startups underserved, particularly those led by underrepresented groups or located outside major tech hubs. According to data from WSJ, only 2% of VC funding went to Black founders in 2025, highlighting systemic inequities in capital allocation.

Cherryrock’s strategy aligns with a broader trend of niche funds emerging to fill gaps left by traditional VC firms. By targeting Series A and B rounds, Cherryrock is addressing one of the most critical stages for startups seeking sustainable growth. This focus could also help bridge the gap between seed funding and late-stage rounds, which are often dominated by larger institutional investors.

BUSINESS 2.0 Analysis

Stacy Brown-Philpot's Cherryrock Capital represents a bold departure from the prevailing trends in venture capital. While Silicon Valley’s largest firms continue chasing mega-deals in sectors like AI, Cherryrock is doubling down on overlooked founders who are building scalable, software-driven solutions. This strategy is particularly noteworthy given Brown-Philpot’s extensive experience at Google and TaskRabbit, both of which have shaped her understanding of growth-stage challenges.

From an industry perspective, Cherryrock Capital’s focus on Series A and B rounds addresses a critical funding gap that often hampers the progression of promising startups. For more on [related ai developments](/ai-investment-moves-from-hype-to-hard-assets). These rounds are essential for scaling operations, expanding product offerings, and hiring talent. By targeting underinvested entrepreneurs, Cherryrock is not only leveling the playing field but also potentially unlocking untapped market opportunities.

However, this approach is not without risks. Smaller checks and niche investments may limit the firm’s ability to compete with larger players in the long term. Additionally, the emphasis on diversity and inclusion, while commendable, may face challenges in attracting co-investors or follow-on funding from traditional VC firms. Still, Cherryrock’s strategy underscores a growing recognition that the venture capital model must evolve to address structural inequities and foster innovation across a broader spectrum of founders.

Why This Matters for Industry Stakeholders

For entrepreneurs, Cherryrock Capital represents a vital lifeline, particularly for those who struggle to secure funding from traditional VC firms. Founders from diverse backgrounds or non-traditional markets can benefit from the firm’s targeted approach, enabling them to scale their businesses during critical growth stages.

For investors, Cherryrock’s strategy signals a shift towards more inclusive investment practices. While this may initially seem niche, the focus on underinvested entrepreneurs could yield significant returns as these founders bring unique perspectives and solutions to the market. For larger VC firms, Cherryrock’s approach serves as a case study in balancing profit with purpose.

Forward Outlook

Looking ahead, Cherryrock Capital is well-positioned to influence the broader VC industry. As the firm continues to build its portfolio, it could catalyze a shift towards more equitable funding practices. This could encourage larger firms to reconsider their investment strategies and diversify their portfolios.

However, Cherryrock’s success will depend on its ability to demonstrate tangible returns from its investments. For more on [related ai developments](/how-to-manage-multiple-autonomous-ai-agents-with-rag-and-mcp-30-12-2025). Metrics such as portfolio company growth, follow-on funding, and exit valuations will be critical in establishing credibility and attracting co-investors. With Brown-Philpot’s leadership and industry expertise, Cherryrock has the potential to redefine venture capital norms and drive systemic change.

Key Takeaways

• Cherryrock Capital focuses on Series A and B funding for overlooked software startups.
• Stacy Brown-Philpot aims to address systemic funding gaps in Silicon Valley.
• The firm’s strategy reflects a return to traditional venture capital principles.
• Cherryrock could catalyze broader changes in the VC industry.

References

1. Source: TechCrunch
2. Wall Street Journal
3. Financial Times
4. Bloomberg

FAQs

• Who is Stacy Brown-Philpot? Stacy Brown-Philpot is the former CEO of TaskRabbit and a Google veteran. She founded Cherryrock Capital in 2025 to address funding inequities for underrepresented entrepreneurs.
• What is Cherryrock Capital’s investment focus? Cherryrock targets Series A and B funding rounds for software startups, particularly those led by overlooked founders.
• How does Cherryrock differ from traditional VC firms? Unlike larger firms chasing mega-rounds, Cherryrock emphasizes smaller, strategic investments in growth-stage companies, aligning with early VC principles.
• What challenges could Cherryrock face? Potential risks include competing with larger firms and ensuring follow-on funding for portfolio companies. However, its niche focus could yield high-impact returns.
• What’s the outlook for Cherryrock Capital? Cherryrock could influence broader VC practices, encouraging more inclusive funding strategies. Its success will depend on portfolio growth and demonstrated ROI.