One of the startups invested in by venVelo’s first early-stage startup fund that launched in 2012 was Orlando-based Fattmerchant (now called Stax), which went on to become one of Central Florida’s fastest-growing firms.
VenVelo hopes to replicate the success of its first fund and further build up the region’s startup community with a second fund now underway, venVelo President and CEO Richard Licursi told Orlando Inno. The venVelo II fund has raised more than $1 million, with plans to raise more, to invest in startups over the next four to five years.
The Winter Park-based fund is interested in investments across Florida, and it's not opposed to investments outside the Sunshine State, Licursi said.
However, its focus is Central Florida companies. This is good news for local early-stage startups in need of investment dollars to expand their teams, develop their products or find customers.
What's next
The fund is ready to get started, and Licursi said it’s likely to make two or three investment deals before the end of the year. VenVelo II will focus on pre-revenue or early revenue firms, said venVelo board member Garren Work. “Coachability is one of the most important characteristics venVelo looks for when investing in an entrepreneur.”
VenVelo adopted a new strategy with the second fund.
In the first fund, the firm raised more than $4.5 million up front and then deployed the money into startups. This time, venVelo raised less with plans to go back and raise more as much as needed, Licursi said. “We learned this time to take a smaller amount and be ready to put more into it.”
In addition to Stax, the original venVelo fund invested in Orlando-based Zentila LLC, which was acquired in 2016 by software company etouches, and Orlando-based FlexEngage Inc., which since has raised more than $11 million, according to Crunchbase. The first venVelo fund paid investors nearly twice what they put in, Licursi said.
The launch of a second fund by venVelo is great for Central Florida, said Mitchel Laskey, managing partner of Orlando-based venture capital firm DeepWork Capital LLC. “We hope there’s opportunities to invest with them.”
Startup investment growth
The second venVelo fund is one of several new local startup investment vehicles announced this year. Others include:
- DeepWork Capital’s third fund, which seeks to raise up to $20 million according to U.S. Securities and Exchange Commission documents
- Tavistock Group and Lead Sports’ Lake Nona Sports & Health Tech Fund, which aims to raise and deploy $30 million
Orlando saw big growth in startup investment deals in the first half of the year after the Covid-19 pandemic slowed investment deal flow in early 2020.
Metro Orlando companies landed $134.3 million in the first half of 2021, up 130% from $58.5 million in the first half of 2020, according to a July report from PitchBook and the National Venture Capital Association.
The need for technology-based solutions to make more activities virtual during the pandemic is driving record amounts of tech investment deals this year, according to the report.
Contact
Anyone interested in contacting venVelo can reach out via its website or by emailing richard@venvelo.com.
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