Costanoa Closes $135 M second Fund To back Cloud, data Startups
Bernadette Tansey July eight, 2015
Costanoa challenge Capital, an early stage investment firm founded in late 2012 with $ one hundred million to regulate, enjoyed a handy guide a rough rating via late 2014 when one of its first portfolio companies, Westminster, CO-based totally Datalogix, drew an acquisition bid from Oracle and quickly offered for a pronounced $ 1.2 billion.
With that short observe report, Palo Alto, CA-based totally Costanoa has simply closed a new fund of $ a hundred thirty five million extra to unfold around to startups. The venture agency’s target interests haven’t changed—it concentrates on young corporations that lend a hand customers and businesses make the shift to cloud-based totally services and products and large knowledge prognosis.
“we love working with early stage companies,” founder and managing associate Greg Sands says. Costanoa had already started building its next-technology portfolio as monetary commitments came in ahead of the second fund’s close.
From this new fund, the venture firm has backed Redwood city, CA-primarily based Alation, which goals to make a company’s information extra available within its ranks of IT people, analysts, shoppers, and directors; San Francisco-based totally Bugcrowd, a security startup that crowdsources threat detection for clients; Menlo Park, CA-based Apptimize, which makes instruments to replace and optimize cell apps; and San Francisco-based on-demand customer support company right away.
Costanoa will reserve cash from its first fund to continue beef up for the companies it backed from that fund, Sands says. these companies embrace San Jose, CA-based totally monetary administration firm Intacct, and big apple e-mail advertising firm Return path.
The venture firm focuses on seed funding and series A rounds, and has invested between $ 500,000 and $ 6 million in individual startups. but 75 percent of the businesses it has backed bought $ 2 million to $ 5 million, Sands says. That pattern will continue because it invests the second fund, Sands says.
if you happen to’re seeing some geographic patterns among the many portfolio companies mentioned, you’re no longer mistaken. Costanoa’s portfolio corporations are clustered in the Bay area, ny, and Boulder, CO. These clusters make it extra environment friendly for Sands, partner Neill Occhiogrosso, and Costanoa investor Bucky Moore to keep up a correspondence with their portfolio companies, Sands says. And, like a number of VCs nowadays, they’re a arms-on crew.
“We like to steer, we like to head on boards, we prefer to be energetic investors,” Sands says.
despite the advantages of proximity, though, Sands says he’s keen to look at startups outside Costanoa’s present clusters.
“We’re open to entrepreneurs during the united states,” Sands says.
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