Investment firms EMERGING and Promethean have announced the launch of The Experience Fund (XPR), a new $300 million investment vehicle. With a hard cap of $500 million, the fund will focus on artificial intelligence and automation platforms designed for the hospitality and experiential entertainment industries. The initiative is co-sponsored by the two firms and led by Mathew Focht of EMERGING and Michael Burt of Promethean.
A Strategic Partnership
The new fund formalizes a successful six-year working relationship between the two investment firms. XPR combines EMERGING's specialized origination and operational capabilities with Promethean's two decades of institutional private equity and capital structuring expertise. This collaboration creates a powerful entity poised to identify and nurture high-growth technology companies in the sector.
Targeting the Intelligence Layer
XPR's investment strategy is centered on the "intelligence layer" that underpins the modern experience economy. The fund will target companies developing AI, automation, and data infrastructure that power consumer-facing brands from behind the scenes. Key areas of interest include order and beverage automation, computer vision, autonomous services, and supply-chain intelligence.
According to Mathew Focht, the hospitality sector presents a rare combination of massive scale with minimal legacy technology. He noted that the most successful ventures will be the AI platforms that remove cost, labor friction, and operational guesswork. This focus on foundational B2B technology, rather than consumer applications, defines the fund's core thesis.
Addressing a Market Opportunity
The fund aims to address significant inefficiencies within the U.S. restaurant and foodservice industry. As the nation's second-largest private-sector employer with 15.7 million workers, the sector struggles with high turnover and single-digit profit margins. XPR sees a substantial opportunity to drive value by introducing advanced technological solutions to these persistent challenges.
A key advantage for XPR's portfolio companies is the market access provided through Buyers Edge Platform. Led by EMERGING General Partner John Davie, the platform serves nearly one-third of all U.S. restaurants. This connection offers an immediate and extensive distribution channel for new technologies, accelerating their adoption and growth.
Transforming Experiential Entertainment
Michael Burt highlighted that technology is now revolutionizing physical entertainment in the same way it previously transformed media like music and film. He explained that the fund is investing in the essential infrastructure that drives modern in-person entertainment. This includes both technology-driven experiences and the B2B systems that help operators deliver superior service.
EMERGING brings a proven track record in the category to the new venture. Its portfolio includes IP-driven social entertainment concepts such as F1 Arcade and Flight Club US. The firm has also backed key technology platforms like Botrista, BrewBird, and Serve, demonstrating deep expertise in the fund's target areas.
The launch of The Experience Fund marks a significant capital injection into the technology powering hospitality and entertainment. By focusing on foundational AI and automation, the $300 million fund is strategically positioned to solve critical industry challenges. This initiative by EMERGING and Promethean is set to accelerate innovation, enhance operational efficiency, and redefine the future of the experience economy.