Uncork Capital cracks open two new funds
Uncork Capital, the now 15-year-old, early-stage venture firm formerly known as SoftTech VC, has closed up two new pools of committed capital totaling $200 million: $100 million for its sixth early-stage fund, and $100 million for an "opportunity" fund so it can stuff a little more capital into those of its portfolio companies that start to break away from the pack.
The firm had closed its first opportunity fund with $50 million in mid 2016. It closed its fifth early-stage fund at the same time with $100 million.
We talked on Friday with Uncork founder Jeff Clavier about the firm, which is currently writing first checks that range from $750,000 to $2 million. He told us that as with Uncork's most recent set of funds, the idea is to invest in roughly 35 companies across three years, taking 10 percent ownership on average, and up to 12 percent of a portfolio company when it is the lead investor.
Clavier also said that while fully half of the fund will go into startups that sell cloud software to businesses, Uncork plans to invest roughly 10 percent of the fund in consumer marketplaces; roughly 10 percent in hardware; roughly 20 percent in so-called frontier tech - whether it be augmented reality or virtual reality or space of robotics or blockchain-related deals; and roughly 10 percent in bioinformatics and synthetic biology.
That last area of interest is brand new to Uncork, so we asked if the firm - which counts Stephanie Palmeri and Andy McLoughlin as partners - was perhaps planning to hire a biotech investor. Clavier said that isn't, that instead it will rely on external resources to help with due diligence and to learn along the way. "In the same way that I looked at 30 investments in space tech and invested in Loft Orbital [a company that's assembling a constellation to carry payloads for customers who don't want to operate their own satellites], my expectation is that I'll look at a bunch of [synthetic bio] deals and we'll end up with one or two," he said.
Uncork has enjoyed a steady stream of exits in recent years, including, mostly newly, the sale of ad tech company Vungle for a reported $750 million last month to the private equity firm Blackstone. [Clavier declined to confirm or correct its sale price.]
Uncork is also an early investor in the food delivery company Postmates, which is reportedly on track to go public this year. And Uncork was an early backer in the email service startup SendGrid, which sold to the publicly traded communications platform Twilio earlier this last year for $3 billion in stock.
Some of the firm's other high-profile bets include Fitbit, which went public in 2015; Brightroll, which was acquired by Yahoo in 2015; and Eventbrite, which went public last fall (though its shares almost immediately fell below their IPO price and have remained below it).
As for its first opportunity fund, the startup that has received the biggest check from Uncork - $5 million - is the fashion resale marketplace Poshmark, which is also reportedly eyeing an IPO in 2019.