DURHAM – Venture capital has grown increasingly difficult to raise, statistics show, but early-stage investor Jurassic Capital – launched in 2019 – has a lot to roar about. Like raising more than $30 million for its first fund. And its’s oversubscribed to boot.

“US VC fundraising totaled just $33.3 billion in the first half of the year, on pace for the lowest annual total since 2017,” reports PitchBook. But Jurassic as well as the Triangle-based Tweener Fund and Cary-based Cofounders Capital have all brought in new funds this year.

Jurassic has invested in five companies to date, including Zoomph, a Virginia-based sports marketing company, in June.

What the founder says

“We founded Jurassic to fill a gap for bootstrapped founders that need capital and expertise to scale their software businesses. I saw this gap while growing Bronto Software. With this fund, I look forward to helping founders and their software companies overcome the scaling challenges that Bronto experienced.”

– Joe Colopy, General Partner

Kevin Mosley, General Partner at Jurassic Capital, talked with WRAL TechWire about the fund which was launched by Bronto Software founder Joe Colopy after he sold that company in 2015 for some $200 million.

  • So what are the secrets to your funding success given the general lack of new fund raising? How did you buck the trend?

We were fortunate to start fundraising in a light way in 2021 so we hit our initial close of $20M+ by January 2022 before things shifted.

Raising the last $10M+ over the last 18 months was certainly more difficult given how overallocated most potential LPs are in early stage tech investing.

Our thesis of investing experience alongside capital in bootstrapped or lightly capitalized founders resonated very well with exited founders who have lived through the gap that we invest in.

[In announcing the closing of the fund, Mosely added: “We’re excited to further scale our operationally-focused growth equity strategy to software companies throughout the Southeast. We feel confident in deploying this fund after experiencing the strong interest that we have had from investors and founders from our first four years.” ]

  • New funding isn’t necessarily good news for startups – they still have to convince your team to invest. Have you raised the bar on your requirements for funding?

We invest in bootstrapped or lightly-funded B2B software companies in the Southeast with $1-5M in revenue. We like to get to know founders over a longer period of time so we can make sure we can add real value beyond capital.

  • What about valuations? Do they favor investors more and does that mean you can stretch your cash for more deals?

Valuations have seemingly returned to pre-pandemic levels in our space. What was true then continues to be true, which is that the best companies can still fetch premium valuations and investors are happy to pay more for less risk.

  • What’s the deal flow like in a tougher economy? NC is reporting record levels of new businesses. What are you seeing?

We have been focused on a gap that continues to persist, so we have had excellent deal flow from the start.

We have five portfolio companies, four of which are in NC, so we continue to see NC as a great place to start and scale a tech company.

  • What about the quality of the entrepreneurs?

Bootstrapped and lightly capitalized founders know how to do a lot with very little, so they are thriving in today’s environment where capital efficiency is key.

  • Size of investments? Any change there?

We typically invest $2-3M initial checks for large minority stakes (15%+).