SoftTech VC announced the closing of an $85m venture capital fund.
Backers included 20 institutional LPs and 40 individuals (43% Fund of Funds, 23% Family Offices, 15% Endowments & Pension Funds, 10% Foundations, 9% Individuals).
SoftTech VC IV focuses on seed stage opportunities in B2B and B2C technology. In details, investment areas include Software-As-A-Service (SaaS) such ad mobile infrastructure and services, vertical SaaS and cloud infrastructure, B2C services and connected devices, and marketplaces.
The firm will also continue to invest in Digital Health, EdTech, and New Platforms (drones, bitcoin/blockchain, glasses/virtual reality).
Fund IV aims to take larger stakes in portfolio companies and make follow-on investments in subsequent rounds. The strategy is to make initial investments of $500k to $1m, with the goal of owning a 7-10% ownership stake. It plans to invest about $35m in 50 companies over 3 years, leaving $50m for follow-ons. Geographically, they intend to commit the majority of the capital in San Francisco/Silicon Valley, with New York, Boulder, Southern California, and Toronto-Waterloo forming the balance.
The fund is a substantial boost in size from SoftTech VC’s $55m third fund that was raised in 2011. They had previously raised a $15m fund (SoftTech VC II) in 2007.
Led by Jeff Clavier, founder and managing partner, Charles Hudson, Partner, and Stephanie Palmeri, Principal, SoftTech VC is one of the most established micro VCs in Silicon Valley, with $155m under management.
The firm, which began in 2004, has offices in Palo Alto and San Francisco.
SoftTech VC IV has already invested in DocSend, Panorama Education, Halo Neuroscience, Niche, Stitch, Soldsie and Sapho.