FCA Venture Partners announced that it had just closed a US$53 million fund. The capital they have raised would be used to fill a funding gap that exists between angel and later-stage investment periods. FCA Venture Partners is the venture capital manager of Clayton Associates, an investment firm.
The company said the fund will be invested in information technology and health care services companies with a large growth potential. FCA Ventures will invest between US$2 million and US$6 million to companies. According to Matthew King of FCA Venture Partners, the capital range of US$2 million to US$6 million had become less crowded.
The strategy is to commit funds in companies with US$500,000 to US$1 million in revenue. The firm's goal would then be to have the company generate revenues of US$10 million to US$20 million in revenue, King said. The FCA Venture Partners V, as the fund is officially called, had already invested around US$3.6 million in Nashville-based Entrada Health and had dedicated US$21 million to seven other companies.
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