In some industries, the idea of “closing” can be the worst possible outcome. But in the world of startups, closing is often a very good thing. And the latest news from the Portland Seed Fund is no different. The Portland Business Journal just revealed that PSF has just closed their third fund to the tune of $13.9 million.
In the parlance of venture capital funds, “closing” applies to the concept of the fund “being closed to additional Limited Partners.” Meaning that there’s no more room in the fund. They’ve raised all the money they set out to raise.
Which means PSF will now be quickly transitioning from raising money to seeking out promising startups that will enable them to deploy — or invest — that capital.
And it’s that new ability to focus — rather than trying to juggle raising money and deploying money — that is the good news for local startups. With PSF fundraising in the rearview, the partners can focus more of their energy on talking to startups, managing deal flow, and investing in companies they find promising. As an added bonus for the startups, PSF now has a limited amount of time to deploy that capital. So with the official close of Fund III, the countdown clock to deploy that capital is officially ticking.
What kinds of startups will PSF be seeking?
With this fund, the group can write bigger checks, said co-managing director Angela Jackson. The checks range from $50,000 to $100,000, with potential for a few larger amounts. The group will also do follow-on investing.
The investment thesis for PSF remains unchanged. The group backs capital-efficient companies with high-growth potential.…
Jackson expects the fund to make another 20 to 30 investments in the next two-and-a-half years. The team is also hosting an event to hear from founders Aug. 6 at the Portland State Business Accelerator.
For more information, visit Portland Seed Fund.