Austin, Texas–(COMMERCIAL WIRE)–Upcoming Coastal Ventures today announced the closing of $310 million in capital through three different funds. With a focus on entrepreneurs on the “Next Coast” of innovation, Austin-based Next Coast has become one of the fastest growing venture capital firms in Texas, raising more than $500 million in just six years.
“Reaching $500 million in assets under management is a true milestone for us, and we owe a debt of gratitude to the incredible entrepreneurs whose success has brought us this far,” said Mike Smerklo, co-founder and managing director of Next Coast Ventures. director. “These new funds will support entrepreneurs along different paths, whether it’s building businesses from scratch or through the entrepreneurship through acquisition or ‘search fund’ model.”
Several exits from the first two funds have validated Next Coast’s investment approach, including:
- mediumalertan Austin-based company that provides emergency warning communications services, sold a majority stake to Vista Equity Partners in March 2021.
- Tenfoldan Austin-based customer experience integration platform, was sold to LivePerson (NASDAQ: LPSN) in October 2021.
- chargebacka real-time dispute management for Salt Lake City-based merchants, was sold to Sift in May 2021.
- navigatea Mendota Heights, Minnesota-based third-party logistics services and supply chain management company, was sold to Radiant Logistics (NYSE MKT: RLGT) in December 2021.
High-growth innovative businesses in Next Coast Ventures’ current portfolio include:
- Everly Health (Austin): A provider of comprehensive diagnostic services to both consumers and businesses, the company has grown rapidly and now serves more than 20 million lives and 250 business customers a year.
- ICON (Austin): The builder of 3D-printed houses raised an additional $185 million in a round led by Tiger Global Management in February. The latest round brought ICON’s total capital to $451 million.
- MOUTH (Miami) – Industry leader in building, buying, and scaling Amazon-centric brands.
- shipper (Austin) – Developer of an onboarding platform that enables employers to create engaging experiences for new bred employees $32 million in Series B funding in February, bringing its total investment to $50 million.
- UpEquity (Austin): A closed tech-enabled mortgage platform $50 million in funding in October 2021, increasing its total funding to $77 million.
Three funds to support innovation in the technology centers of the ‘next coast’
The $310 million in capital was raised in three funds:
Next Coast Ventures III, the largest of the funds, raised $195 million to invest in and support entrepreneurs and early-stage technology companies.
A $50 million opportunity fund, NCV Select I, will allow the company to continue supporting Fund I, II and III companies.
- Next Coast ETA raised $65 million for entrepreneurs to acquire, manage, and eventually exit small and medium-sized businesses.
Building a team of former entrepreneurs to support today’s entrepreneurs
Next Coast has a strong investment team with years of hands-on operating experience. Each investment partner has been an operator at some point in his career and can support different aspects of the business-building journey from his own unique perspective. The firm also provides founders with access to the Next Coast Ventures Expert Network, a collection of more than 150 senior executives offering advice and mentorship.
kaitlyn bernard recently joined Next Coast as Partner and Head of Platform to further enhance its ability to support entrepreneurs within its portfolio with hands-on trading experience.
“We are grateful for this opportunity to work with inspiring entrepreneurs to continue to produce top quartile returns for our investors,” said Thomas Ball, co-founder and CEO of Next Coast Ventures. “In addition to the strong rate of recovery from our existing investors, we are also pleased to welcome new investors to Next Coast funds, including university endowments, pension funds and family offices.”
About Next Coast Ventures
Next Coast Ventures is an Austin-based venture capital firm that partners with bold entrepreneurs building innovative companies in great markets. Provides early-stage capital to high-growth startups in “next shore” markets, using trends and macro themes to guide their investment strategy. Next Coast provides its growing group of portfolio companies with hands-on help, business start-up manuals, a strong network of experts, and the founders’ own experiences as entrepreneurs and operators. Next Coast ETA, founded in 2020, invests in the best and brightest future CEOs, helping them find, manage and grow a business with superior returns in the lower and middle markets. Learn more at nextcoastventures.com.