In 2020, Austin venture capital firms accounted for four of the most active funds in the Southern U.S., according to a PitchBook report. They're familiar names to just about anyone involved in the local startup scene. By rank, they were Capital Factory, LiveOak Venture Partners, Silverton Partners and Next Coast Ventures.
Last month, LiveOak announced its $210 million new fund. And this week, Next Coast filed paperwork with the U.S. Securities and Exchange Commission showing it plans to raise a $175 million third fund, along with a $50 million fund called NCV Select I LP that might be for follow-on investments or something else.
Next Coast, led by co-founders and managing directors Mike Smerklo and Tom Ball, declined to comment. That's common during this stage in which a firm files a Form D listing the targeted amount they plan to raise; additional insights usually come when the firm closes its fundraising activities.
While we'll have to wait on details, it's still big news to see one of the city's most active VC firms building a new war chest.
Next Coast has been extremely active in the local startup scene, deploying much of its capital to Austin-based startups. That includes investments in November for Austin-based landlord insurance company Steadily Insurance Agency Inc. and Houston- and Austin-based BrainCheck. UpEquity, Osano, Boxt, CrowdHealth, Eterneva and Everly Health are other local companies in Next Coast's portfolio.
The new fund will follow its $130 million NVC II fund, which was announced in 2019. And that one followed the firms initial $85 million fund.
Next Coast's next financial chapter also comes as Austin's venture capital ecosystem continues to mature. As firms like Next Coast and LiveOak raise more money than ever before, firms from both coasts continue to open offices here or relocate their HQs.
That includes relocations from big players like 8VC and Mithril Capital, as well as local offices from Breyer Capital and Moneta Ventures.
