Fulcrum Equity Partners, an Atlanta-based growth investment firm, closed a $275 million fund — its largest yet.
The firm’s fourth fund is focused on healthcare services and information technology, business-to-business software and technology-enabled services, according to a March 23 news release.
The oversubscribed fund had nearly all of Fulcrum's existing investors participate, according to the release. Investors include Cox Enterprises, Nonami LLC and other former and active executives of the industries in which Fulcrum invests, according to the partners.
The fund’s close comes at a time when the Atlanta technology ecosystem is seeing rapid expansion. Multiple startups have surpassed $1 billion valuations, and tech giants such as Microsoft and Airbnb have announced plans to expand in the city.
Tech experts say Atlanta has all the right ingredients to become an East Coast tech hub — a diverse talent pool, a robust university system, affordable cost of living and travel connectivity.
For years, local capital has been the one piece missing.
Fulcrum’s newest fund pumps much-needed money into the ecosystem and is indicative of an emerging trend of funds that accommodate the city's tech growth.
The announcement follows the formation of Panoramic Ventures, a $300 million fund created by BIP Capital’s Mark Buffington and serial entrepreneur Paul Judge to support companies from seed-stage to Series B. Zane Venture Fund is targeting a first fund of $25 million, and Silicon Road Ventures recently closed a $31 million fund.
Fulcrum closed its third, $203 million fund in 2017 and has been a staple of Atlanta's tech ecosystem since its founding in 2006. Its first fund was about $40 million, according to Fulcrum partners.
Fulcrum invests $4 million to $25 million in companies to help with internal growth, acquisitions, shareholder liquidity, recapitalizations and divestitures, according to the release. The firm focuses on investing in companies not on the West Coast in industries where the partners have operational expertise.
“The innovation emerging across the country promises an exciting path for Fund IV,” said founding partner Jeff Muir in the release. “Our team is looking for strong businesses with leadership teams who are ready for the next phase of growth with partners who can offer much more than capital.”
So far, the firm has invested in Atlanta software startup Kobiton, Birmingham, Ala., healthcare services company ProxsysRX and Durham, N.C., software startup Kevel. Fulcrum partner Jim Douglass said the firm plans to make about 15 investments with the fourth fund.
Sixteen of Fulcrum’s portfolio companies have exited, according to its website. The firm has 24 active investments.
