One of Florida’s top venture capital firms is working on a new fund to invest in companies in Orlando and beyond.
Orlando-based DeepWork Capital LLC is raising money for a new fund, the firm’s third, Managing Partner Ben Patz told Orlando Business Journal. The money DeepWork raises from investors will go into the fund and eventually be invested into local and regional startups.
“Our thesis is similar to our other core funds in that the Southeast, Florida in particular, is an underserved market.”
More local investment
A filing with the U.S. Securities and Exchange Commission shows the fund seeks up to $20 million in total investment.
Patz said he could not share more information about the fund. However, anyone interested in the fund or learning more can reach out to DeepWork at inbound@deepworkcapital.com.
DeepWork, which in 2019 was named the most-active venture capital firm in Florida by CB Insights, is an investor in local companies that include Stax (formerly Fattmerchant), AireHealth Inc. and NanoPhotonica Inc.
More investment dollars are important for Central Florida businesses and the economy. Startups often use venture capital deals to fund their businesses, make industry connections and find resources and expertise needed to grow. This, in turn, leads to the creation of high-wage jobs and innovative solutions for other businesses.
VC improves in Central Florida
Most venture capital deals are concentrated outside of Florida, with companies in Boston, Los Angeles, New York and San Francisco metros landing 75% of the $156.2 billion raised in 2020, according to the Venture Monitor report by PitchBook and the National Venture Capital Association.
However, Central Florida companies saw an upswing in venture capital deals last year. Local businesses combined for $325 million in venture capital deals in 2020, the most in any year since at least 2013.
While Silicon Valley and other tech hubs are expected to remain the top spots for venture capital deals, increasing amounts of capital will flow to other metros, PitchBook VC Analyst Kyle Stanford wrote in the Seattle-based investment data firm's 2021 outlook report.
“Over the past few years, there has been a concerted effort by the venture industry to get capital outside of the main tech hubs — the Bay Area, New York and Boston.”
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