Raising capital in today's market is no small feat, and it's especially hard to establish a new venture capital fund.
Bozeman, Montana-based Next Frontier Capital (NFC), an early-stage VC firm with an office in Boulder, completed raising money Wednesday for a $102 million fund from which it will make startup investments.
"This significant achievement, particularly in the current challenging market environment, underscores the trust and confidence our investors place in our team and our vision," NFC said in a statement.
The fund, called NFC Fund IV, will be invested in 20 to 25 fintech, cybersecurity, artificial intelligence, climate, data, deeptech, energy and defense startups, according to NFC. The companies must be based in the Intermountain-West region, including Colorado, Utah, Wyoming, Arizona, New Mexico, Montana, Oregon, Washington, Idaho and Nevada, NFC said.
NFC Fund IV took more than a year to raise, Will Price, NFC's founder and managing partner, told Colorado Inno via email.
The fund includes participation from the New Mexico State Investment Council. The council invested at least $10 million into this fund, according to Venture Capital Journal.
"We extend our deepest gratitude to our returning limited partners," Price said in a statement. "Your continued support and belief in our vision have been instrumental in reaching this milestone. Your commitment allows us to continue driving innovation, fostering growth and delivering value across our investment portfolio."
A portion of Fund IV has already been invested in seven businesses, including AI-assisted recruiting startup Squarepeg and software company VirtualZ Computing, said Les Craig, a general partner at NFC.
Since its founding in 2015, NFC has invested in 58 companies, including leading Boulder-based Optera's $12 million round last September. NFC's previous three funds totaled $21 million to $80 million each. The firm typically writes $2 million to $3 million checks to participate in a startup's pre-seed or seed round.
In addition to announcing its recent fund, NFC is adding to its Boulder team.
The firm hired Erika Nash as a partner who will work from the Boulder office at 1801 13th St., Suite 302. Nash previously worked at OpenView Partners, Sorenson Capital and Pelion Venture Partners.
She will join NFC's General Partner Kirsten Suddath in the Boulder office.
"Erika's deep industry knowledge and track record of success make her a valuable addition to our team, and we are excited to welcome her aboard," Suddath said in a statement. "Erika further strengthens NFC's investment expertise and leadership in the region."
Boulder has become a hot spot for venture capital firms, with several out-of-state companies opening offices or building a local team.
Other VC firms like Massive, Matchstick Ventures, Boulder Ventures, Sweater Ventures, Foundry Group and Buff Gold Ventures have offices in the college town. NFC opened its Boulder office in December 2021.
"We firmly believe that seed investing means having boots on the ground, integration into the local community and playing a catalytic, impactful local role," Price told Colorado Inno.
