June 8, 2016
Time is money, particularly when talking about startups. And while many venture capital firms believe that allowing a fund to blossom is a good thing, SoftTech VC went for a faster, more effective play when it came to their two new funds. And while their Fund IV is only now wrapping up, these two new funds should spell big money in coming years.
Dubbed the SoftTech VC V and the SoftTech Plus, these funds will go to a myriad of new, radical innovations from early stage entrepreneurs around the world. The fund closings come on a special day for SoftTech as today marks their 12-year anniversary. They closed at an admirable $100M and $50M respectively.
“Our entire team is beyond excited to start a new chapter for the firm with these two new funds and to find additional ways to support our founders. We’re humbled to have the opportunity to back more awesome entrepreneurs whose crazy ideas just might work and to help them build iconic companies that will have a meaningful, positive impact.”
SoftTech VC V
The two funds in question have a number of different features and purposes for SoftTech. Fund V will invest in about forty seed stage startups over the next three years, with initial check size ranging from $500K to $1.5M. While the fund will take a broad approach to investment, SoftTech emphasizes that local startups will be the prime focus. With 80 percent of investments in the Bay Area and only 10 to 15 percent on the East Coast, that fact is more than clear. They also plan to acquire between 7 and 10 percent of funded startups, opening up future revenue streams for the venture capital firms.
SoftTech VC Plus
On the other hand, SoftTech VC Plus will invest $2M to $5M (or more) in Series C or Series D rounds of existing portfolio companies, going as far back as Fund II. The goal here is double down on existing successful companies already in the SoftTech VC family. The startups in question will be evaluated based on revenues, growth rate, valuation, and exit potential, setting up both for success in the long run. They expect to invest in anywhere between 12 and 15 startups in order to bolster their already impressive portfolio.
We talked to Jeff Clavier previously about what he looks for in the startups he funds in this video interview.
Did you like this article?
Get more delivered to your inbox just like it!