DURHAM – Bull City Venture Partners has closed an oversubscribed $53 million fund, Bull City Venture Partners Fund IV, L.P., the Durham-based venture capital fund announced today.
The firm, which focuses investments on seed- and early-stage companies in the Southeast and Mid-Atlantic, noted in a statement that its portfolio has experienced five exits in the prior 8 month.
And with the new fund, and the $53 million in capital commitments, the firm expects to double-down on its existing strategy. The $53 million is more than twice as much as the firm raised in its third fund, $26 million. In total, the firm will now have more than $100 million in assets under management, according to the company.
“With the new fund, BCVP intends to mirror the proven strategies from its previous funds, but with greater impact and firepower,” said Jason Caplain, co-founder and general partner at Bull City Venture Partners, in a statement.
One such strategy employed by the firm is in how it operates in relation to founders of companies, Caplain noted.
“Building strong partnerships with entrepreneurs is of paramount importance to how our firm operates,” he said. “The growth of the firm and each of our portfolio companies over the past decades speaks to just how impactful a shared vision between investors and founders can be.”
The fund launched in October 2020, and according to the firm, capital from the fund has already been deployed.
Building on prior success
The firm typically invests in software, e-commerce, financial technology, mobile, and healthcare IT companies. Notable portfolio companies include ChannelAdvisor, now a publicly-traded company on the New York Stock Exchange, ServiceTrade, Even Financial, and The Knot Worldwide.
In addition, in 2015, the firm backed Spoonflower, which was acquired last year by Shutterfly for $225 million.
“Founders and entrepreneurs in these markets are fueling the economic success of our region and beyond,” said David Jones, co-founder and general partner at Bull City Venture Partners, in a statement. “While it is increasingly possible for companies to be built anywhere, few places have access to talent, understanding of market problems, and a rush of new founders moving in like this region of the U.S.”
One such entrepreneur who moved to the Triangle, and then started a business that would go on to raise capital from the firm is Rachael Classi, founder and CEO of Tiny Earth Toys, which raised $1.5 million last year in a round led by Bull City Venture Partners.
But the venture capital firm invests in entrepreneurs that have established roots in the Triangle, as well. For instance, the firm is also an investor in Levitate, a startup launched by Triangle-based serial entrepreneur Jesse Lipson.
Bull City Venture Partners also welcomed a new member of the firm, investor Michael Lee, earlier this year.
Durham startup Tiny Earth Toys raises $1.5 million to keep plastic out of landfills
