SOURCE: Grotech Ventures

Grotech Ventures

May 13, 2013 07:00 ET

Grotech Ventures Raises Eighth Fund at $225 Million

Fund to Target Innovators Pursuing Large Opportunities in High-Growth Information Technology Markets

VIENNA, VA--(Marketwired - May 13, 2013) - Grotech Ventures, a leading early investor in high potential technology companies and one of the longest established firms in the venture capital industry, today announced the close of its eighth fund, Grotech Ventures II ("GV II"), with $225 million in committed capital. The fund was oversubscribed by more than 10 percent, and was raised from both existing and new investors. GV II brings Grotech's total capital under management to $1.3B across all funds. 

The approach for GV II will be consistent with Grotech's core strategy. The firm typically represents the first institutional money raised and, initially, invests smaller amounts of capital. Grotech continues to invest as the company grows. As part of its strategy, Grotech forms top-tier industry syndicates with other investors and has demonstrated its ability to exit strategically to maximize success for Grotech's LPs and portfolio companies alike.

The focus for GV II will continue to be in areas where the firm has deep domain expertise and in geographic areas that tend to be underserved by early-stage capital. Grotech seeks the most innovative early stage IT companies in high growth markets including: digital media; social, mobile & cloud computing; enterprise and infrastructure software; security technologies; consumer internet & ecommerce; as well as energy and healthcare IT.

With offices in Northern Virginia, Maryland and Colorado, the firm has already made 12 investments from the new fund and continues to invest its current fund, Grotech Ventures, which has been a top performer. 

"We're extremely pleased to have raised GV II, which speaks to the success of our investment approach, our ability to execute investing fundamentals, and the solid performance of our most recent fund," said Frank Adams, managing general partner and founder of Grotech Ventures. "These attributes were directly related to our ability to raise this fund in an environment that continues to be very challenging and competitive," said Adams.

Adams also noted that the fund was oversubscribed due to strong interest from both new and existing LPs. "Our investors remain confident in the ability of our experienced and diverse team to pick companies with potential to lead in their respective markets," said Adams.

Grotech invests primarily in innovative enterprise and infrastructure software companies, in diverse technology segments. Each investment has common characteristics including strong entrepreneurs and big opportunities for success in large markets. Some of the firm's portfolio companies that typify the strategy include HelloWallet, Invincea, LivingSocial, Logi Analytics, LogRythym, OpenQ, Optoro and Zenoss. 

The firm also secured a major exit recently with NexGen Storage, which was acquired in April by Fusion-io, Inc. for approximately $119 million in cash and stock.

About Grotech Ventures

Founded in 1984, Grotech Ventures (www.grotech.com) is a leading early investor in high-potential technology companies. Grotech seeks innovative, early-stage IT companies and continues to invest and add value throughout the growth of its portfolio companies. The firm has a strong combination of industry relationships and deep domain and operational expertise to accelerate growth. Grotech supports early-stage companies through investments starting at $500,000. General partners include Frank Adams, Chuck Cullen, Lawson DeVries, Steve Fredrick, Don Rainey and Joe Zell.

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