SoftTech VC Closes $150M Across Two New Funds

Early in January 2016, I was thrilled to announce Stephanie Palmeri and Andy McLoughlin becoming Partners! At that time, we filed SEC Form Ds disclosing the creation of two new funds – SoftTech VC V and SoftTech Plus. We’re delighted to announce that both funds have closed at their hard cap, respectively $100M and $50M –  great news as we celebrate our 12-year anniversary. Most importantly, we are beyond excited by the myriad of new, radical innovations we see coming from early stage entrepreneurs and the opportunity we have to help them realize their vision with our active support and capital.

To share a bit of background: we invest our funds on a 3-year investment cycle and will be wrapping up Fund IV (that held a final close a couple of years ago) as planned sometime in Q316. Why raise a fund when we had plenty of dry powder in Fund IV? When we discussed our fund raising plans with … Read more »

Stephanie Palmeri and Andy McLoughlin both made Partners!

You got the gist of it – now read on for more details.

First, Stephanie: ever since I met her 5 years ago, I have been impressed by her drive, smarts and resourcefulness. Even though I sort of pushed her away initially, we were lucky enough to have Stephanie join us as Senior Associate then Principal – and sponsor 18 investments across Fund III and IV (including Niche [TWTR], Grovo, and ClassDojo), sourcing and supporting several more. Not only has Stephanie developed the fundamental skills that make a great investor (sourcing, board leadership, fundraising, legal), she has supported companies in good times and challenging ones, and become an invaluable contributor to both our SoftTech family and the broader ecosystem. Thanks to her hard work, Stephanie has demonstrated that she has earned the Title and I am very excited to share the good news: Stephanie is now my Partner.

Andy joined us last April as Venture Partner after … Read more »

Huddle’s Andy McLoughlin joins SoftTech VC

All of us at SoftTech are excited to announce that Andy McLoughlin (LinkedIn) will join us as a full-time Venture Partner on April 1st, 2015.

In 2006, Andy co-founded London-based Huddle, an enterprise content collaboration company which has raised over $80M to date. Over the years, he led technology, product, marketing, and strategy, eventually moving to San Francisco in 2010 to establish the company’s US presence.

About five years ago, Andy started his angel investing career. He has built a portfolio of 35+ pre-seed/seed stage investments, mostly in the Saas/B2B space but also covering e-commerce and mobile. He was the very first angel in our own Postmates. His other angel deals include Secret Escapes, Apiary,, Buffer, Intercom, and Pipedrive.

When we spoke to founders he backed, Andy was consistently praised for the quality and relevance of his advice, and the value add he was able to deliver despite having “a day job”. We can’t wait to … Read more »

SoftTech VC Roundtable: Tamara Mendelsohn, VP Marketing at Eventbrite

We’ve launched a speaker series at SoftTech VC for our portfolio company founders and executives. Over the next year, we’ll invite experts and friends to speak to an intimate audience about a wide variety of topics. While much of the content will be “off the record” to encourage open dialog, here’s a peek into our inaugural event featuring Tamara Mendelsohn, VP of Marketing at Eventbrite. 

Not many marketers begin as a startup’s first marketing hire and go on to build and lead a 60+ person global marketing team over five years. Tamara broke the mold, joining Eventbrite after earning her MBA at MIT Sloan School of Management to focus on community and over time building out a cross-functional, cross-continent marketing organization. We were excited to pick her brain. Top of mind to the early stage founders and marketing leaders in the room was understanding how Tamara grew a marketing organization from scratch – beginning … Read more »

SoftTech VC Raises $85M For Its Fourth Fund

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 »

Meet the SoftTech VC Founders Honored on Forbes’ 2013 30 Under 30

Forbes released its third annual ‘30 Under 30‘ list of young disrupters, innovators and entrepreneurs – and we’re proud to see many of SoftTech’s founders represented again this year and joined by several our new rising stars.  Meet our founders that made the list and a huge congratulations to Aaron, Xan, David, Alex, Sam, Liam, Tyler, San, and Rafael!

Aaron Feuer, Xan Tanner, David Carel (22, 22, 23), Cofounders, Panorama Education (Forbes ’30 Under 30′ Education) The Yale grads (from left: Feuer, Tanner, Carel) saw their company become one of the most talked about ed tech startups of the year when it announced $4 million in seeding funding from Mark Zuckerberg’s Startup: Education, among others, in October. Panorama is specifically designed for K-12 schools to help them find data-driven solutions by collecting and analyzing feedback from teachers, parents, students and staff. It’s now used in more than 4,000 schools serving more than one … Read more »

Why We Need an Entrepreneurs Visa

Since the pilgrims landed at Plymouth Rock, immigration has been the fuel that drives innovation and growth in America. Those first immigrants came to this country in search of the freedom to develop themselves as they saw fit, but also to develop America into the place full of opportunities we enjoy today.

I know this firsthand because that’s exactly the reason why I came to Silicon Valley. I was born and raised in France — certainly not one of the oppressive political systems we see in other parts of the world. I didn’t need to escape, and had been successful in France but I still came to to the Valley for what this amazing innovation ecosystem has to offer — and what I ended up offering in return as a venture capitalist.

I was lucky. I got in very easily because I happen to have the right visa. However, our broken immigration system often results in promising entrepreneurs … Read more »

Meet SoftTech VC’s Founders Honored as Forbes 2012 30 Under 30

Forbes released its annual ‘30 Under 30‘ list of disrupters, innovators and entrepreneurs – and we’re proud to see many of SoftTech’s rising stars represented.  Meet the SoftTech VC founders that made the list and a BIG congrats to Sam, Liam, Carly, Isaac, Zain, Stephen, and Alex!

Sam Chaudhary, 26 & Liam Don, 26 from Class Dojo (Forbes ’30 Under 30′, Education)

Class Dojo founders Sam Chaudhary and Liam Don as disrupting the classroom with their classroom management software that enables teachers to track good and bad student behavior. Since launching in 2011, six million teachers and students use Class Dojo on their smartphones, tablets, and the web to dramatically improve classroom culture and increase educational productivity.



Carly Gloge, 28 and Isaac Squires,29, from Ubooly (Forbes ’30 Under 30′, Games & Apps) Carly Gloge and Isaac Squires are the brains and games behind Ubooly, a iPhone/iPod Touch … Read more »

Announcing Stephanie Palmeri’s Promotion to Principal

Just one year ago, we were happily announcing that Steph was joining us (OK, after I tried to dissuade her in a first place). She promptly took the lead on next generation commerce opportunities, as well as helping our companies with their marketing strategy. Overall, she has contributed a lot to our firm and our companies in such a short time.

That’s why today Charles and I are thrilled to share an exciting piece of news: Steph’s promotion to Principal. Join us in wishing her well! And follow Steph on Twitter at @stephpalmeri.

Crunchies 2012: Congratulations to category winners Fab and Fotopedia

 As it has been the tradition now for a few years, our industry gathered last night to celebrate the achievement of startups and founders at the Crunchies. In a choked full venue (and a completely saturated AT&T network because of the number of smartphones in the audience), we enjoyed a fast paced program going through 20 different categories.

We were extremely pleased to see porfolio companies Fab win Best Shopping Application, and Fotopedia win Best Tablet Application. Congratulations to our teams, who both saw an exploding growth this year.

I particularly appreciated the tribute to my friend Heather Harde, the former CEO of TechCrunch, who totally deserved her standing ovation. And the emotional moment of Fotopedia’s Jean-Marie Hulot who recalled that the last time he was in this venue, he was on stage with Steve Jobs to launch the NeXT  – but Steve was no more (JMH was the CTO of NeXT back in 1988, … Read more »

Announcing SoftTech VC III’s final close at $55M

All of us at SoftTech are super excited to share that we reached a critical milestone for our firm: we have wrapped up our third fund, SoftTech VC III. Back in January 2011 we announced Fund III, with an initial $35M target, then increased it to $50M and at investors’ demand, agreed to bump it up to $55M before closing it, oversubscribed. We can also – finally – talk about it since we’re no longer fund raising and aren’t subject to non-sollicitation restrictions any more – yeah!

So why raise $55M, when our second fund was $15M? I learned a lot investing Fund II from 2007 to 2010, and figured that even for seed funds, outsized returns are generated by having the right level of ownership, and a meaningful level of follow-on participation, in your portfolio companies. We therefore upgraded our strategy from Access (“get in the good deals”) to Ownership (“buy/keep … Read more »

Welcome Stephanie Palmeri, the gal I meant to dissuade taking a job in venture… and ended up hiring

We’re super excited to announce that Stephanie (“Steph”) Palmeri has joined SoftTech VC as Senior Associate, a brand new position in our firm which has grown 400% since January 1st. Steph is awesome: smart, workhorse, funny, New-Yorker, swear-proof, determined, Columbia MBA – in no particular order. And we can truly say that serendipity is responsible for that lucky find for us.

If you follow me on Twitter/Google+, you might recall a post I wrote a couple of months ago (which generated a lot of great comments):

A very smart MBA (who just graduated) wrote me asking if there was a job opportunity at SoftTech VC. She really wants a job in venture apparently, which I can respect, but I really think that venture (aka “the dark side”) is a gig you do after accumulating operating experience. Here is what I wrote her:

“In any case, I don’t think that we … Read more »