Chainsmokers DJ duo raising a third venture capital fund

The Chainsmokers, who consistently rank in the top five highest-paid DJs in the world, are quietly raising their third venture capital fund in as many years, On The Money has learned. 

Best known for hits like “Closer” and “Don’t Let Me Down,” the electronic duo has also been building Mantis Venture Capital since 2020.

In the first round, Alex Pall and Drew Taggart raised $41 million.

In the second round they raised $81 million and now they’re aiming to top that — with a third fund focused on artificial intelligence and Web 4.

The Chainsmokers have been mostly quiet about their investment activities and have invested in fintech companies like Trace Finance and Vise rather than customer-facing brands.

Apart from promoting Jaja Tequila, which they own a stake in, the pair haven’t appeared in advertising campaigns or used their social media to tout investments.

Sources close to the duo say it’s because they want to build a completely separate brand for their business as opposed to their music.

“They didn’t want to do a press release, they wanted the returns to speak for themselves,” a source said.

Instead of pushing brands with consumers, they’ve been spending time meeting with hundreds of investors.

While the group hasn’t disclosed investors in the fund they’re raising now, previous backers included Founding Partner, Executive Chairman and Director of TPG Jim Coulter, Shark Tank’s Mark Cuban, Founders Fund partner Keith Rabois, and so-called “super angel” investor Ron Conway.

A representative for the pair declined to comment. 

While Pall has nearly 550,000 followers and Taggart has more than 1.3 million on Instagram, a source close to them said “social media isn’t their value add.” 

“Alex and Drew serve in an advisory capacity. They’ve spent more than 10,000 hours understanding the companies they work with — looking at pitch decks, analyzing investments and meeting founders.

Of course for some companies they work with, The Chainsmokers’ fame is a major appeal.

While they’re not promoting their investments on social media, the pair will regularly get on calls with engineers considering taking a job offer at one of the portfolio companies.

“A FaceTime call from the Chainsmokers can move the needle when a startup is trying to hire someone,” a source adds.

Pall, 37, studied art history and the music business at NYU and Taggart, 32, studied music at Syracuse University. 

While neither performer has a finance background, they made several seed investments of around $250,000 in a coffee mug insulation company Ember and another investment in loan processing service LoanSnap.

According to previous interviews the duo has said they look at “Margaritaville” singer Jimmy Buffett as an inspiration since he blended creativity and music writing with his business acumen.

Buffett named a hospitality company on his song “Margaritaville” and has used that brand to create merchandise, casinos, restaurants and even a retirement community.