A year after selling his family business, a Triangle entrepreneur is going all in on venture capital.
For Nikin Shah, the decision to go forward full time with Front Porch Venture Partners, currently in its second fund, “is a dream.”
Apex-based Polyzen, a business started by his father, Tilak Shah, was acquired by Solesis, an advanced biomaterials company, in November of 2022. Shah stayed on for a year to help ease the transition, exiting the firm for good Nov. 2.
And now, by joining Front Porch – the firm he founded with longtime friends as a side business – he can help execute the second fund, which closed on $12.6 million in August.
Shah said Front Porch continues to see great deal flow – despite macro headwinds in the startup sector.
Front Porch invests in funds as well as companies – typically on a 60 to 40 split.
The first fund, which has been fully deployed, included contributions to funds out of local players like Cofounders Capital and Oval Park. The second fund has already invested in nine funds and 10 companies – including Jurassic Capital, a fund out of Bronto co-founder Joe Colopy, and Champion Hill in Chapel Hill.
Shah said he continues to be bullish about innovation in the Southeast. Two years ago, startups and their sky high valuations had the upper hand, he said. Now the pendulum is swinging toward the investor.
“What we’re finding with startups is everyone’s focusing back on their core,” he said. “A key thing we’re looking for is not necessarily profitability, but a path to profitability. I think the best companies are continuing to grow and raise money.”
Shah estimates the firm has invested in nearly 340 companies, 30 direct investments and 310 indirect through its fund to fund investments.
Front Porch is made up of longtime friends Gregg Bordes, Shah and Joe Mancini, who met at business school at Duke University. All three left the Triangle after graduation, but found themselves returning to the region.