Chris Pacitti and his Elsewhere Partners co-founders have set up the first fund at their Austin venture capital firm with the flexibility to make investments ranging from $5 million to $20 million.
The recently closed $70 million fund likely will produce between 10 and 12 total investments, Pacitti said June 12.
Investment targets will be “expansion-stage software companies” that have a “meaningful amount of customers and revenue,” he said. Those businesses will generate roughly $5 million in annual revenue and be ready to scale, Pacitti said.
Companies of that size frequently find it challenging to obtain investment compared to those that generate between $10 million and $20 million in revenue, he said.
Elsewhere Partners will often be the first institutional investor in a company, Pacitti said.
The investment strategy Pacitti, John Thornton and Sam Kentor will apply enables them to make smaller investments in portfolio companies, in the $5 million to $7 million range, as well as larger investments "when the opportunity makes sense to lean into," Pacitti said. “Our [limited partners] love to engage in co-investments.”
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