LiveOak Venture Partners raised its largest fund to date, $ 210 million to Fund III, which will allow the Austin-based, early venture capital firm to double Texas founders.
The fund was oversubscribed – the company originally had targets between $ 150 million and $ 200 million – and was completed in less than four months, co-founder and partner Krishna Srinivasan said in an interview. Fund III brings assets under active management to nearly $ 500 million.
“It all happened over Zoom and we could have traveled more,” he added. “We ended up with a diverse base of investors, comprising 90% of institutional investors and over 40% of investments from new investors.”
The mix of supporters included pension funds, university funds, foundations, prominent family offices, local Austin entrepreneurs and founders and executives from LiveOak portfolio companies.
Srinivasan and Venu Shamapant started the firm in 2012, and its first two funds both raised $ 105 million. They are investing in technology across Austin, Houston, Dallas and San Antonio and pumping money into 49 companies so far, with plans to add another 25 to 30 with the new fund. The company’s first check is between $ 1 million to $ 5 million, and will invest about $ 10 million over the course of a company’s life cycle.
These companies have raised over $ 1 billion, Srinivasan said, and include companies such as the legal technology company Disco, which was listed in July with a valuation of $ 3 billion, and Homeward, which raised $ 371 million in debt and equity in May to a 1 dollar. billion valuation.
The company highlights this fund as “the largest institutional Texas-focused, early venture fund of the past decade” at a time when corporate finance in the state is at a record high.
More than $ 90 billion has been invested in Texas-based businesses since 2016, according to Crunchbase data. In 2021, $ 14.2 billion was invested so far, and is ready to overshadow the $ 15.4 billion invested in companies throughout 2020. One of the largest capital injections during the five-year period took place in this month: Austin-based business formation firm ZenBusiness raised $ 200 million in a round led by Oak HC / FT.
“The Texas market is an exciting place right now,” Shamapant said. “We are big supporters of the market, and now others are beginning to recognize what we have known. It was a positive tailwind when we got into fundraising. Our results are that we have been confirmed that the strategy is right and works well. “