Scaleworks, a San Antonio-based B2B SaaS focused venture equity firm, closed its second flagship fund, Scaleworks Fund II, with $80M in capital commitments.
Led by Lew Moorman and Ed Byrne, Scaleworks is a venture equity firm specializing in investing for controlling stakes in B2B SaaS companies and operating them for high-growth.
Venture equity is a term coined by the firm, which sits at the intersection of venture capital and private equity. Where the venture capitalist succeeds by getting outsized returns on a very small number of their investments, and the private equity fund acquires proven businesses with upside from smart financial engineering and operational discipline, venture equity takes the VC interest in growth opportunities, with the private equity focus on already proven businesses.
With its $60M Fund I, the majority of which was deployed by the end of 2017, Scaleworks’ portfolio grew to eight companies, now including Chargify, Earth Class Mail, Filestack, Keen, Mailgun and Qualaroo. Exits included Assembla and FollowUp.
In addition to its venture equity fund, the firm formed a debt fund in 2018 which provides alternative funding for B2B and SAAS companies.