Austin Venture Capital Firms
When it comes to startups and investments, 2019 has proven that venture capital is alive and well in Austin. Throughout 2019, startups in and around Austin saw 263 venture deals and raked in over $2.2 billion. The most successful year in terms of funding was the year 2000, with $2.52 billion in investments.
2019 has shown that Austin is heading back towards its former glory. In fact, it was one of the top 10 venture markets in the US that year. But, to understand whether a market has a healthy source of investments, it’s essential to look at the investors.
Here are some of the key VC firms in Austin, Texas.
LiveOak Venture Partners
The primary focus of the LiveOak Venture Partners firm is on series A and seed funding. Live Oak occasionally invests in later stages, but their main area of expertise is early-stage help. Their investments range from $250k up to $4 million on average.
This company looks to be the largest investor in all companies they work with. So far, LiveOak has had over 50 investments, and in 31 of them, they are the leading investor. The company was founded in 2012 in Austin, and it has been operating from there ever since.
The most significant investments so far: Eventus Systems, RxWiki, OJO Labs, InforcePro, and Infocyte
Total funds managed: $109 million
Detailed information about LiveOak Venture Partners
Central Texas Angel Network
CTAN (Central Texas Angel Network) focuses on providing specialized early-stage funding to accredited angel investors, early-stage companies, and entrepreneurs. They provide funding, education, guidance, networking opportunities, and information.
Since it was formed in 2006 as a non-profit organization, CTAN has invested in over 110 companies. However, only 30 of their investments are transparent. One of the most recent major investments was in the Rocket Dollar Company ($3.4 million).
The most significant investments so far: Rocket Dollar, Loan Genius, Infinite, Curb, Apptive, CSID, Localeur, and ClearBlade
Total funds managed: Individual investments of $64 million
Detailed information about Central Texas Angel Network
ATX Venture Partners
ATX Venture Partners was founded in 2014, and this firm focuses on investing in application companies, marketplaces, and B2B software. Most of their investments are early-stage, helping out aspiring entrepreneurs and startups.
The company is also known as ATX Seed Ventures because they specialize in this kind of funding. So far, the company has made over 56 investments. They have 29 lead investments, and some of the most recent ones are in Joust, Pens Systems, and Slingshot Aerospace.
The most significant investments so far: IdealSpot, Unbill, AlertMedia, Everfest, RideScout, and Team
Total funds managed: $25 million
Detailed information about ATX Venture Partners
Mercury Fund
Mercury Fund was founded in 2005 in Houston, Texas, but they’ve opened a secondary office in Austin. This is an early-stage VC firm with investments all across the middle-US. Their focus is on technology innovation, aspiring entrepreneurs, and brand new startups.
It’s one of the most significant investment funds for new startups in the middle of the US. Their REED investments start at $50k and go up to $500k, while their series A funding ranges from $1 million to $2 million. Mercury Fund has an average investment, throughout the company’s lifetime, at $4.5 million.
They have over 12 investments under their belt, with 41 lead investments.
The most significant investments so far: Olea Edge Analytics, TeleVet, GameSalad, ShareThis, BlackLocus, Spruce, and Datical
Total funds managed: Over $200 million
Detailed information about Mercury Fund
S3 Ventures
The S3 Ventures firm is focused on helping out aspiring entrepreneurs in the state of Texas. They help with both early-stage investments but also in later stages with various growth strategies. This is one of the most successful and largest venture capital firms in Texas.
S3 Ventures has investments across various industries, including technology, healthcare, marketplaces, IT infrastructure, consumer software, and much more. The company was founded in 2007, and since then, they’ve been involved in 65 investments, 39 of which are lead investments.
The most significant investments so far: IFM Restoration, LeanDNA, Liveoak Technologies, Interplay Learning, Phunware, Favor, and Datical
Total funds managed: $500 million
Detailed information about S3 Ventures
Silverton Partners
The Silverton Partners venture capital firm is primarily focused on early-stage investments. Their investment portfolio ranges from CPG brands, tech services, to software solutions. Both entrepreneurs and teams looking to start new tech projects in Austin can rely on Silverton for funding.
Their initial investments go from a minimum of $200k on average, and up to $2 million. They have 44 lead investments and a total of 135 investments. Silverton has several investment funds, and each of them is focused on different types of deals or markets.
The most significant investments so far: Gembah Inc, Living Security, The Zebra, OneDay, TurnKey, WP Engine, Self Lender, Equipboard, and TrendKite
Total funds managed: Over $250 million
Detailed information about Silverton Partners
Next Coast Ventures
Founded in 2015 in Austin, Texas, the Next Coast Ventures VC firm focuses on series A, series B, and seed investments for technology companies. Both early-stage and middle-stage companies can seek investments from them.
This venture capital currently has two funds. The first one topped at $130 million with individual investments ranging from $3 to $5 million. Their primary investment markets are in between the two coasts. Next Coast has made 35 investments with 12 leading ones.
The most significant investments so far: AlertMedia, DOSH, 101 Commerce, Swivel, Stoplight, Tenfold, TrustRadius, and Diligent Robotics
Total funds managed: Over $130 million
Detailed information about Next Coast Ventures
Austin Ventures
Austin Ventures is one of the largest and oldest venture capital firms based in Austin. It was founded in 1984 and has had over 374 investments in their portfolio. They’ve made 137 lead investments, which is over a third of their total number.
The firm has raised over $4.5 billion in investments, and they invest in a variety of industries from manufacturing, software industry, tech innovation, and so on.
The firm works with young entrepreneurs, startups, early-stage companies, and middle-market businesses. Their focus is on the Texas business market, where they dominate with their numbers.
The most significant investments so far: Spredfast, Onit, Tasktop, Vyze, Ambiq Micro, Vyze, Bloomfire, Datical, and many others
Total funds managed: Over $4.5 billion
Detailed information about Austin Ventures
CAVU Venture Partners
This venture capital firm was founded in 2015 in New York. Their headquarters are in New York, but they have offices across the US, including Austin, Texas. This is one of the most active venture capital firms focused on the food and beverage industries.
The firm has made over 17 investments with ten leading. Even though it’s a young firm, CAVU has demonstrated a lot of success and know-how. This is evident as the firm currently has five funds.
The most significant investments so far: Kettle and Fire, REBBL, Once Upon a Farm, Kite Hill, Good Culture, Hippeas, Vital Proteins, and dot.LA
Total funds managed: Undisclosed
Detailed information about CAVU Venture Partners
Elsewhere Partners
This is one of the newest venture capital firms in Austin, founded in 2017. Even though the firm is a new player, they’ve been actively boosting Austin’s business ecosystem from the very start. Their primary focus is on growth-stage companies that have achieved great results with little money.
Elsewhere Partners work in the software industry and have over 150 partners. They help companies achieve growth with vital investments, strategic advice, and industry expertise. Their fund was opened in 2019, with a total of $70 million. The company specializes in series A and Series B investments.
The most significant investments so far: Itential, Statflo, Relatient, ActivTrak, OpsCompass, and many more
Total funds managed: Over $70 million
Detailed information about Elsewhere Partners
What Makes Austin’s Startup Scene so Unique?
Austin has the fastest-growing metro area in the United States. It’s a hotbed for young people with a live music scene. A lot of tech talent is pouring into Austin from Silicon Valley and other hotbeds of the tech industry.
At the same time, some of the largest tech giants, like Facebook and Google, are increasing the number of employees here. Compared to other metro areas, it has a lower cost of living, which makes it ideal for millennials looking to live in a city and start a business.
Bottom Line
Austin is also the home of Silicon Hills, which is the hotbed of the tech industry in Texas. Venture capital leaders see potential in the area, and they are willing to support young companies. It’s up to people with business ideas to realize that opportunities are lying around here – they just need to seize them.