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Two Austin-based venture capital firms are …

Mary Ann Azevedo covers startups and technology on Crunchbase News.

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Texas startups will soon have two new sources of capital.

Crunchbase News has learned that two Austin-based venture capital firms, ATX Seed Ventures and Quake Capital, are in the process of raising $ 100 million of funding.

The news comes from a period when Austin’s tech scene saw a string of victories. Tech giants Apple and Google recently pledged to expand their presence in the Texas capital in a major way. And venture investment in the city is accelerating at an impressive rate. In January alone, Austin startups grew almost as much as they did in the entire fourth quarter of 2018.

While both companies have different investment strategies, they share some similarities: They are both trying to fill what they perceive as a gap in the early stage of the Austin market, and both are naturally bullish on the region.

Let’s first discuss what ATX Seed Ventures has planned.

The firm recently closed its second $ 32 million fund and is already raising money for its third fund, which has a target of $ 100 million. A first shutdown is expected as early as May and a final shutdown later this year.

While that may seem like a big leap, the company’s partners of five years – Managing Director Chris Shonk, COO Danielle Allen, and Brad Bentz – explained to me that the company actually has more than $ 60 million under management, so the larger size may look more dramatic than it actually is.

“We put a significant amount of capital to work outside of our primary fund with co-investments…” Shonk said. “But we are excited that investors will not only double, but also triple.” It’s a strong sign of investor confidence. “

ATX Seed Ventures launched its first fund at SXSW 2014, in which it deployed capital of $ 17.25 million. The firm currently has 26 portfolio companies and has already seen four exits: Incent Games (also known as FantasySalesTeam) was acquired by Microsoft; RideScout was acquired by the moovel Group, a subsidiary of Daimler; Set.fm was acquired by VNUE Inc. and Unbill was acquired by Q2ebanking.

Under its name, ATX Seed Ventures began by investing primarily in Austin-based companies. Since then, it has branched out to invest in other Texas cities and is now considering “surrounding” markets.

Despite its name, the firm not only invests in the seed stage, although it is when it prefers to enter the most.

“What we were really trying to do in the market was institutionalize the seed by leading rounds, taking a seat on the council and structuring the terms,” ​​Shonk told Crunchbase News. “We like to be the first institutional round of a company and present what we consider to be the rigor and discipline of Series A and B in the initial assessment stage.”