Silverton Partners ready to invest $75M in more startups

Nov 7, 2013
Austin Business Journal

Local venture capital firm Silverton Partners has raised another $75 million to put toward early-stage technology companies


This is Silverton's fourth fund. It's most recent, which also topped out at about $75 million, helped kick-start about 20 companies


The three-partner Silverton plans to add two more partners during the coming year. Investor Morgan Flager said the firm is positioned to participate in five or six deals per year and invest up to $3 million in seed-stage and Series A rounds of financing


About 75 percent of its portfolio companies develop software. Although such investments were previously nearly all enterprise software companies, the firm is slowly shifting more toward consumer software in tandem with the local trend


Silverton was founded by Bill Wood, a founding partner of Austin Ventures LP. Silverton’s third fund closed in 2006 and produced several exits such Convio Inc. — which was bought by Blackbaud Inc. — and Hyper9 Inc. — which was bought by SolarWinds Inc. — but it also funded 18 active companies, according to the firm


Several business incubators and accelerators have opened local programs and the Central Texas Angel Network is reporting record-level activity. During the second quarter, CTAN was the most active angel investment group in the nation based on deal volume, according to the Halo Report by the Angel Resource Institute, Silicon Valley Bank and CB Insights


Last year, CTAN invested about $8 million — the largest annual amount since the group was established in 2006 and a 37 percent increase in investment over the previous year. It’s on pace to top that figure this year


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