Our firm SoftTech VC hit three critical milestones in 2014: we opened our San Francisco office in April, celebrated our ten year anniversary in May, and now with great excitement, we are delighted to announce the close of our latest fund, $85M SoftTech VC IV. This brings our total capital under management to $155M.
Why $85M, which is quite a bit more than our $55M Fund III raised in 2010-11? That fund backed 55 companies over 3 years, as planned. About $25M were allocated to initial investments, and $30M were earmarked for follow-ons. Things worked perfectly until we saw the median size of A rounds increase from $5-6M to $8-10M in the last year – with a few of our companies raising up to $15M. Not a bad problem to have given the traction that they had developed, but these large rounds threw off our reserves model. So we decided to increase the size of Fund IV to allow for … Read more »