Atlanta investor Overline is closing its second fund – dollars it could deploy to the Triangle, according to founders Michael Cohn and Sean O’Brien.
Overline’s sweet spot has been in funding early innovation, being “the first institutional check,” O’Brien said.
The firm’s new opportunity fund, however, is looking outside the seed-stage. The plan is to write between 10 and 12 $1 million checks “that will be placed in companies at that later-stage that are unicorn bound,” Cohn said, adding that the firm is building a founder network in the Southeast. “We believe founders of later-stage companies in the region will find the platform we’re building to be very compelling.”
Overline was founded on the belief that entrepreneurs shouldn’t have to go to Silicon Valley to get funded.
“We obviously look for large markets and fantastic founders, but first and foremost for us is the geographic filter,” Cohn said.
Overline invests throughout the Southeast, from D.C. to Louisiana and Florida. And it’s actively mining the Triangle for future investments. Already, Overline has funneled capital into ResultID, an analytics firm cofounded by Triangle entrepreneur Aditya Badve.
Cohn said at least one other Triangle firm is on its radar.
The pair said they look for open relationships with the founding team. When pitching, founders should be able to convey the business model, as well as the milestones they’re expecting.
“We lean very heavily toward founders,” said O’Brien. “We look for a solid founder problem fit, a founder market fit where they deeply understand the problem they’re trying to solve, ideally from personal experience.”
Due diligence typically takes more than 30 days – sometimes as long as 120.
“That speaks more to our desire to engage early than it does our inability to move quickly,” Cohn said.
Overline prefers to meet entrepreneurs prior to their first funding round – and several times, through both video conferencing and in-person meetings.
“We’re looking to make investments that are seven to 10 years in term, and we want to make sure we have a good solid basis,” O’Brien said of the relationship with management.
An Overline check to a seed firm can be as small as $250,000 or as large as $1.5 million.
“We like to lead and we are unafraid to come in early,” Cohn said.
Overline closed its first fund, Overline Seed Fund I in 2020. For its second fund, it has $13 million in commitments, Cohn and O’Brien said.
