Green Bay venture capital firm TitletownTech has invested in 23 startups as part of its first fund. And while it's reserving capital in the $25 million fund to double down on some of those companies, its first portfolio is complete.
"We have made all the investments in new companies that we're going to make out of fund one," TitletownTech managing director Craig Dickman said. "We will still be making follow-on investments in the 23 companies that make up the portfolio."
TitletownTech is targeting $80 million for its second fund, according to a June filing with the U.S. Securities and Exchange Commission.
"With the SEC filing, what I can tell you is we think that accurately reflects what we're going to be doing," said Dickman, who declined to comment further due to SEC rules.
The first fund, which launched July 1, 2019, has 17 limited partners, including the Green Bay Packers and Microsoft Corp. as its "anchor partners," Dickman said. Other limited partners include Robert W. Baird & Co., Schneider National Inc. and Plexus Worldwide LLC, according to TitletownTech. The anchor partners invested at the same terms as the other limited partners, he said.
TitletownTech invests in early-stage startups across the U.S. and Canada with a bias toward companies in Wisconsin or that are attracted to the state, according to its website. Its initial check sizes range from $200,000 to $2 million.
Of the 23 companies in its first fund, three relocated to Wisconsin from other states to take advantage of the support services TitletownTech offers out of its Green Bay venture studio facility, Dickman said. ChemDirect moved from Los Angeles, Quantum Radius relocated from Denver and Oculogica came from New York, he said.
Other Wisconsin-based TitletownTech portfolio companies include Synthetaic in Delafield, Fork Farms in Green Bay and Allergy Amulet in Madison.
None of the startups in TitletownTech's first fund has had an exit event like a sale or initial public offering, which is to be expected at this stage, Dickman said. He envisions a three- to five-year investment period and a 10-year window for portfolio exits, which is typical of venture capital funds.
When TitletownTech launched, Dickman envisioned the firm would serve as the "lead" investor for about 20% of its deals. In fact, it has led about 60% of the time, he said. TitletownTech's team has grown to support the responsibilities associated with leading venture capital rounds, including negotiating company valuations and other investment terms, and conducting due diligence, Dickman said.
TitletownTech has stepped up as a lead investor to fill a gap in Wisconsin's venture capital industry, Dickman said.
"There are more firms that will follow on than those that lead, and that's just the nature of the marketplace," Dickman said. "If we try to artificially hold the 20%, we'd be missing a lot of opportunities that exist in this region and then, frankly, those (companies) would have to look outside the region (for venture capital)."
