Vienna, Va.-based early-stage venture capital firm Grotech Ventures is in the process of raising as much as $200 million for its next fund, which would be its ninth fund to date, according to a regulatory filing. Grotech is a prominent investment force in D.C., Maryland and Virginia—an early investor in Optoro, Invincea, LivingSocial, HelloWallet (acquired by MorningStar) and Personal, among others.
The firm’s last fund, Grotech Ventures II L.P., was a bit higher than that amount; the VC firm raised $225 million for the fund, which was oversubscribed by more than 10 percent, per TechCrunch. Grotech Ventures II L.P. closed in March 2013.
Grotech’s core markets of investment include internet product companies, digital media, enterprise cloud software and healthcare IT. The firm also has three rising cybersecurity companies in its portfolio: Invincea, ThreatConnect and DB Networks — two of which hail from northern Virginia.
Grotech typically invests "between $500,000 and $5 million in early stage, high growth technology companies, reserving significant capital for subsequent investments to support companies through early and growth stages," the firm's website reads.
Founded in 1984, Grotech changed its name in 2008 from Grotech Capital Group and then shortly afterwards made a critical investment in LivingSocial’s $5 million Series A.
Founder Frank Adams previously told the Washington Post in 2013 that around the same time Grotech Ventures II L.P. closed, his firm also inked 12 new deals. If the same were to happen with Grotech's ninth fund then the D.C. tech scene stands to potentially become a big benefactor in the near future.
DC Inno has reached out to Grotech Venture and will update this story if/when further information is made available
