C2 Ventures does not invest in crypto, Web 3 or consumer companies and stays away from Silicon Valley startups. Instead, the New York venture capital firm is focusing on breakthroughs in traditional industries. For example, one of her portfolio companies is a robotics startup that cleans commercial bathrooms.
Today, the company announced that it has closed its $20 million total early-stage second fund and a $2.5 million separate equity fund that will invest in earlier, pre-stage SaaS for the old economy and robotics productivity tools.
LP Fund 2 includes over 125 investors, including the State of Connecticut through Connecticut Ventures.
Thus, total C2V assets under management exceed $30 million. The firm has more than 30 portfolio companies, three of which have left, including Kambr, a SaaS provider for airline revenue management, which was acquired by Amadeus.
C2V’s general partners are Chris Cunningham and Matt Olivo. Describing C2V’s investment philosophy, Cunningham said, “First, we don’t oppose San Francisco, but we don’t invest in the Bay Area. We do not invest there because it is usually oversaturated. The prices are crazy.”
Instead, C2V is focusing on flyover states and investing in cities like Cleveland, Chicago, and Charlotte.
Cunningham also said the firm is “running as fast as possible” away from crypto, NFTs, Web 3 and consumer companies towards what is “dirty, boring and dangerous.”
“This is an old economy, legacy industries that are ripe for disruption,” Cunningham said. “They had stagnant performance. Examples are advertising technologies, support technologies, insurance technologies, and basic data for commercial freight transport.
Some other examples of C2V portfolio companies include a robotics startup for construction companies and software companies for car washes, laundries and dry cleaners.
“We love these verticals because they are sitting on billions of TAM dollars and hundreds of millions in revenue. They may be recession-proof, but they’re not as glamorous, so they’re being overlooked,” Cunningham said.
While this approach works in the company. The 1 C2V fund, which closed at the end of 2019, has a current IRR of over 50% and two exits. In less than two years, 15 of the 19 portfolio companies have either raised or raised significant additional funding.
Some of the LP Fund 2 include quarterback Baker Mayfield and his brother Matt and NFL Network reporter, as well as founders and technical executives such as Bryan Adams, Jennifer Prince, Shiven Ramji, Sean Cohen, David Kidder, Ari Paparo, Haroun Mohtarzada and Mike Murphy which they are all “operator benches” that help with technical expertise and then support startups after they join the C2V portfolio.
Cunningham said 30% of LP Fund 2 are individuals and family offices, but 70% have experience running a technology company.
In a prepared statement, Matt McCoo, CEO of Connecticut Ventures, said, “C2V is fully in line with our strategy to identify the best early-stage managers in Connecticut committed to supporting and growing our state’s startup ecosystem.
Credit: techcrunch.com /