Palo Alto, California-based, Startup accelerator, SoftTech VC has closed its fourth round of funding with USD 85 million in capital for investing in startups. Also, this fund will focus on seed stage opportunities in B2B and B2C technology startups.
Earlier, it had secured USD 55 million in its third fund and USD 15 million for second fund in September, 2007. The latest Fund brings the total capital to date by the firm is USD 155 million.
SoftTech VC fourth fund includes 20 institutional LPs and 40 individuals (43% Fund of Funds, 23% Family Offices, 15% Endowments & Pension Funds, 10% Foundations, 9% Individuals).
Launched back in 2004, SoftTech VC had made around 157 investments and closed 14 deals this year in companies: About.me, Farmeron, Soldsie, Niche.co, Chartbeat, Top Hat, Stitch and others.
“After investing in 150 startups over the last ten years, we are very excited to see an increase in quality and volume of funding opportunities reaching out to us on a daily basis,” said Jeff Clavier, founder and managing partner at SoftTech VC. “Our job is to sift through a funnel of 2,000 to 3,000 opportunities per year, invest in 15, help them staff up, launch their product, and build their sales and marketing engine to successfully raise follow on rounds from the best VC firms.”
More from the Press Release: Over the years, SoftTech VC has seen a large number of M&A transactions like Mint [Intuit], Mashery [Intel], LiveRamp [Axciom], Milo [eBay], Wildfire [Google], Bleacher Report [Turner], Gnip [Twitter], and its portfolio includes Brightroll, Eventbrite, Fitbit, Sendgrid, Zefr, Poshmark, Coin, Postmates, Kahuna and August.
Clavier says the goal of the Fund IV is to take larger stakes in portfolio companies and to have the resources to follow-on in subsequent rounds. The fund’s strategy is to make initial investments of USD 500,000 to USD 1 million, with the goal of owning a 7-10% ownership stake. The fund plans to invest about USD 35 million in 50 companies over 3 years, leaving USD 50 million earmarked for follow-ons. The geographic mix is expected to mirror the current roster of active portfolio companies, of which 80% are located in San Francisco/Silicon Valley, and New York, Boulder, Southern California, and Toronto-Waterloo forming the balance.
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