The Hive, a Palo Alto, CA-based co-creation studio to build data-driven start-up companies, closed its second fund, with $22m in capital commitments.
The Hive II will identify, build and launch up to 10 new companies that are leveraging data and the innovations in data science and scale-out infrastructure.
Co-founded in 2012 by T.M. Ravi, Managing Director, and Sumant Mandal, The Hive is an incubator/accelerator and also serves as early stage investor, providing seed funding, strategic business counsel and go-to-market expert to its portfolio companies. It makes initial seed investments of $1.5m to $2m, provides follow-on capital, and helps syndicate future rounds of financing with venture capitalists.
Investments focus is on data-driven applications in enterprise, Internet of Things and online segments spanning verticals such as retail and e-commerce, financial services, and media and advertising.
The enterprise focus is on a new generation of Line of Business applications driven by predictive analytics as well as in areas such as security, data center management, CRM and marketing. The IoT focus is on application development platforms, applications and security.
The Hive I, which was started in 2012, invested in eleven companies and realized its first exit when Pinterest acquired Kosei, a machine learning commerce recommendation engine, in January 2015.
Backers include institutional investors such as AME Cloud Ventures, March Capital Partners, MDC Partners, and Verizon Ventures and individual investors and advisors from companies like Facebook, Google, Yahoo, Microsoft, Pivotal, Walmart, UC Berkeley, and Stanford University.
Paul Maritz, CEO of Pivotal, is an individual investor in The Hive.