One of the most visible trends in technology in the past five years has been the increasing amount of conflict between tech startups and government.
There are plenty of obvious examples -- ride-hailing, short-term rentals and dockless bikes. But there are dozens of other startups encountering regulatory headwinds. And that's where Austin-based Trust Ventures hopes to play a decisive role.
Trust Ventures on Tuesday announced it has raised an initial $35 million fund that it will use to invest in a wide variety of startups with disruptive business models that may require regulatory changes or sophisticated strategies to succeed. The Austin venture capital firm had sought to raise as much as $50 million, according to its initial filing.
“Working with Trust Ventures helps disruptive startups find their footing in industries dominated by entrenched incumbents who can bend the rules to protect their businesses,” said Trust Ventures Partner Brian Tochman, who was a co-founder and former president at Kasita. “We’re about working to change the rules to unlock economic opportunities for investors and deliver value to consumers.”
Trust Ventures is backed by Koch Disruptive Technologies, a subsidiary of Koch Industries, which has access to a high-level network of legal experts, lobbyists and strategists.
While Trust Ventures won’t be lobbying, its partners with Koch will connect startups to the most effective lobbyists for their issue, as well as proactively engage lawmakers and start working on policy issues before they become a major controversy.
The Kochs have one of the most influential and aggressive political advocacy networks in the world. Aside from hundreds of millions in political contributions to city, state and federal campaigns, the Koch brothers have helped create and support conservative- and libertarian-oriented policy organizations across the nation that influence local governments with policy studies and grassroots advocacy.
Trust Ventures is led by Tochman, who helped found Austin tiny home startup Kasita, and was vice president of mergers and acquisitions for California-based private equity firm Platinum Equity, and Salen Churi, a former law professor and founder of the Innovation Clinic at the University of Chicago Law School and former lawyer Sidley Austin.
“Innovative startup companies can transform the lives of consumers, reshape or create entire industries, advance economic opportunities and produce sizable returns for investors,” Churi said in a news release. “However, many of these companies now find their path to market blocked by public policy barriers that, while once well-intentioned, today hinder creative solutions for some of our biggest problems.”
