- Oversubscribed sixth fund is the largest early-stage venture fund in the state of Texas; 25-30% of the capital is expected to be deployed out-of-state to support of exceptional entrepreneurs across the country
- $17M designated for separate ‘Opportunity Fund’ allowing Silverton to continue to support some of the firm’s most promising investments at the growth capital stage
- Austin-headquartered investment firm has invested in seed-stage startups that have exited for $3.2B in cumulative value in the past two years
AUSTIN, Texas–(BUSINESS WIRE)–Silverton Partners, a leading early-stage investment firm, has closed $144M in capital. The oversubscribed fund will designate $17M toward the formation of an Opportunity Fund for pro-rata investments in some of the firm’s highest potential portfolio companies.
Austin has been America’s fastest-growing city by population for eight of the past 10 years, and Silverton is the longest-standing active venture firm in Texas. Fund 5, raised in 2017, netted $108M. In the past two years, Silverton’s seed-funded startups have exited for a combined $3.2B. Notable recent exits include Sailpoint, Ping Identity, TrendKite, Favor, WPEngine, Watermark and SpareFoot.
Doubling Down on Texas with an Eye on Emerging Markets
Fund 6 will deploy capital primarily in Texas, with 25-30% allocated for out-of-state investments. Silverton has recently funded startups in emerging markets like New York, Southern California and Utah. The Opportunity Fund, a first for Silverton, enables investments in later-stage funding rounds for existing portfolio companies, partnering with marquee firms, without diluting Silverton’s core focus of Seed and Series A investing.
“Texas remains one of the nation’s most interesting and fastest-growing tech markets, with Austin leading the way,” said Silverton General Partner Morgan Flager. “We’re pleased to have the capital to deploy not only in our home state of Texas but in other up-and-coming markets. And since some of our most successful exits were forged during the 2008 financial crisis, we are excited to help build the next generation of companies that can withstand difficult times and emerge stronger.”
Silverton Partners—led by GP’s Kip McClanahan, Mike Dodd, and Morgan Flager—expects to add 20-25 companies to the Fund 6 portfolio, and up to eight positions in the opportunity fund. The firm has been growing steadily, with Tina Dai joining as a Principal from First Round Capital; Roger Chen, whose previous experience was with Genacast Ventures, promoted to Partner; and Alyssa Dadoly, formerly VP Finance, promoted to CFO.
About Silverton Partners
The Silverton team partners with entrepreneurs who are dedicated to tackling growth markets and building lasting companies. In partnering with Silverton, companies benefit from its vast network and expertise from decades of growing and investing in successful businesses. Founded in 2006, Silverton Partners is based in Austin, TX, and was the initial institutional investor for Sailpoint, WP Engine, SpareFoot, TrendKite, TurnKey Vacation Rentals, The Zebra, AlertMedia, SpyCloud, Self Financial, Billie, and Aceable among others. For more information, visit www.silvertonpartners.com.