Look out, startups. Good news is on the horizon for emerging ventures that are struggling to find funding for growth capital needed to launch them on the way to bigger growth and perhaps an exit – either through being acquired or perhaps an IPO.

Driving the effort to find for first-round and second-round capital, if not later rounds, is Raleigh-based Lookout Capital.

Lookout not only has formed a new investment arm – Lookout Ventures – but also is forming partnerships with other investors that could make deals worth up to $20 million in startups. The news is good for a state that is starving for venture capital.

Its managing partner, Merrette Moore, says he has lined up partners and is seeking more to put together an investor “syndicate.”

“We have and are establishing investor partnerships that will allow us to put together and syndicate investment deals with transaction amounts in the $5-20 million range,” Moore says. “Announcements of specific partnerships are forthcoming.”

Moore also pointed out that Lookout continues to find backers for its growing list of investments.

“Our investor syndicate is nearing 60 investors, almost double the amount we went to market with in 2011,” he says. “We have taken in investors from out of state as well as internationally.”

Since launch three years ago, Lookout Capital has focused on to what Moore calls “up-and-coming” firms and will provide growth as well as expansion capital. Moore has worked in private equity for the past 18 years and has extensive knowledge of the North Carolina tech sector, having worked for Wachovia, Franklin Street Partners, MCNC, NC IDEA, and venture capital firm IDEA Fund Partners.

His father, Bill Moore, is a co-Founder and the chairman of Lookout. Currently chairman of the board at RTI International, the elder Moore is a well-known investment and financial executive in banking, private and public equity.

The new division announced Tuesday broadens Lookout’s footprint to three areas:

  • “Lookout Capital Investments Providing growth capital and investment management services to companies throughout North Carolina
  • “Lookout Advisory Services Providing services related to capital raising, sell-side and buy-side M&A, and management consulting
  • “Lookout Ventures Partnering with entrepreneurs to provide capital, management and other necessary resources to start and build companies”

Walt Clarke, a co-founder of Raleigh-based healthcare marketing and communications agency MedThink, is part of the Lookout personnel expansion. He will serve as director of Lookout Ventures.

Lookout Ventures is what Moore describes as a new “vehicle” for investments with deals ranging from $250,000 to $1 million. However, the backing comes with a caveat.

Its own team will “serve in short-term executive and consulting roles as a condition as investment,” Moore said.

Lookout also is moving into new space and plans to offer parts of it to startups – including one of its own.

“We are moving into our own office space on Nov. 1,” Moore said. “The space is at 7 Glenwood Ave. It’s a 2400 square foot building that will house Lookout Capital, as well as one of our portfolio companies, Contego Medical. We will also be offering ‘flex space’ to companies we’re nurturing through Lookout Ventures.”

New Investment 

Also on Tuesday, Lookout announced a $1.25 million investment in Awarepoint Corporation, a developer of proprietary real time location system technology. The company has an operation in Charlotte and is based in San Diego. Awarepoint says its technology is the only “cloud-based” solution that integrates software and managed services.

The investment is the fourth made by Lookout.