Washington, D.C.-based NextGen Venture Partners has raised $16 million of a potential $20 million total venture fund according to an SEC filing. This will be the first real fund for NextGen since it changed its name and business model away from angel investing earlier this year.
There are 55 investors listed for the fund, with more potentially contributing. NextGen's most recent investment was part of the $80 million funding round for HyperLoop One, the high-speed transport system, in May. It also contributed to flower delivery startup UrbanStems' $6.8 million raise in April. So far, NextGen has invested in 13 companies since it was founded in 2011, including other local notables like Avizia and APX Labs.
NextGen isn't a standard venture capital firm though. Instead of a relatively few investors with extremely high net worth, hundreds of part-time investors commit at least $10,000 a year in startup investments when they join, and pay a membership fee every year. As the group expands into new cities, it forms local boards of volunteers to spread information about NextGen. Companies for potential investment get vetted by locals and by experts in the relevant industry.
The money being raised now is a significant step up from the approximately $1 million NextGen raised last year.
