Austin’s Thriving Startup Ecosystem: Next Coast Ventures Raises $130M
As the year draws to a close, venture firms are ramping up their dry powder, anticipating a potentially uncertain market landscape next year. The protracted trade war with China and ongoing impeachment proceedings have cast a shadow of doubt over the future of tech investments.
A Surge in New Funds
In recent days, several prominent venture firms have announced new funds, including:
- Boldstart Ventures:
- Drive Capital:
- .406 Ventures:
- CAVU Venture Partners:
- Unusual Ventures:
- Northzone:
- Kindred Ventures:
- EQT Ventures:
- Inspired Capital:
- Norwest Venture Partners
With a focus on the future of work, digital natives, and marketplaces transformed by ubiquitous connectivity, Next Coast Ventures’ second fund totals $130 million. This thematic approach is an evolution from its first fund, which focused more broadly on Austin’s entrepreneurial ecosystem.
Next Coast Ventures: A Thriving Regional Firm
- Michael Smerklo, co-founder of Next Coast Ventures, has a proven track record in the industry. He previously acquired ServiceSource, a technology services company he ran for 12 years before taking it public.
- Thomas Ball, his co-founder, spent over a decade with Austin Ventures, one of the city’s leading venture firms.
With this experience, Next Coast Ventures has established itself as a respected player in the region. Its portfolio includes:
* **Everlywell**: A company that offers at-home diagnostic tests and raised $50 million earlier this year.
* **AlertMedia**: A cloud-based mass notification system that aims to streamline notifications across devices and platforms, having raised $25 million in Series C funding.
Next Coast Ventures has also seen five companies in its portfolio acquire by acquirers (terms undisclosed), with another announcement pending. These include:
- OnRamp, a cloud hosting company acquired by LightEdge.
- Clarity Money, a personal finance startup bought by Goldman Sachs.
- Finery, a wardrobe tech company sold to Stitch Fix.
- Brava, a smart oven maker acquired by Middleby.
A Growing Ecosystem
As Next Coast Ventures continues to grow, so does the entrepreneurial ecosystem in Austin. This boom is evident in the number of regional firms raising new funds this year. Some notable examples include:
- LiveOak Ventures: Raised $105 million in April.
- Silverton Partners: Closing a $120 million fund just one year after its previous $108 million fund.
- ATX Ventures and Quake Capital, both trying to raise significant new funds.
The Austin startup ecosystem is indeed booming. With a high quality of life, growing available capital, and an innovative spirit, the region is becoming increasingly attractive to entrepreneurs and investors alike.
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