Local venture capital firm Silverton Partners reportedly raised USD75 million for its fourth fund. The Austin-based firm would be using the fund to invest in local startups who are in their early stages. The fund also included the USD0 million from entrepreneurs and founders in the Austin venture capital scene who had pledged to give back to Austin's growing startup ecosystem.
According to TechCrunch, Silverton had been supporting local startups in the past 30 years. From its Fund III, Silverton was able to make successful exits from startups including Convio, BlackLocus, Crimson, Hyper9 and Javelin. Convio went public recently, BlackLocus was purchased by retailer Home Depot and The Advisory Board Company absorbed Crimson. Hyper9 and Javelin were also acquired by SolarWinds and Avago Technologies respectively.
Silverton partner Kip McClanahan told TechCrunch that one major factor on why the local startup scene in Austin had been thriving was because of lower costs. Compared to Silicon Valley and California, Austin has a lower cost but higher quality of living. McClanahan pointed out that this was essential for startups who wish to get their companies off the ground.
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