Austin Ventures plans to raise a $450 million fund to focus on the development of early-stage startups. This represents a shift for Austin Ventures, which has focused primarily on less risky late-stage companies with a $900 million fund it raised in 2008. From that fund, $600 million was allocated for investments in growth equity deals, which centers on companies with proven business models.
Initially Austin Ventures focused on early-stage startups, and this new fund represents a return to those roots. The reasons for Austin Ventures returning to early-stage startups are unknown, although it may be prompted by the possibility of better returns, or by regulatory needs.
Read more about Austin Venture’s new $450 million fund here.