Veteran VC Greg Sands has launched his own early stage firm, Costanoa Venture Capital, and closed on $100 million for its inaugural fund. Sands, formerly of Sutter Hill Ventures, is the sole GP in the fund. Costanoa will focus on early stage, cloud-based services for businesses and consumers, specifically companies that focus on data and analytics. The firm will make investments between $500,000 and $3 million in seed and Series A round. News of the fund started to leak out in the summer, when Costanoa filed its first regulatory documents. The fund, Sands says, includes investment from institutional investors, Silicon Valley individual investors, and an undisclosed amount from Sutter Hill. So, far Costanoa has backed 10 companies, and Sands says that it will likely invest in another 20. The portfolio includes Datalogix, Risk I/O, DemandBase, and Return Path.
Costanoa Venture Capital today formally launched its firm with 10 initial investments and announced it is has raised an early-stage fund of $100 million. Costanoa is an early stage investor in cloud-based services for businesses and consumers leveraging data and analytics. The will firm focus on providing Series A and seed investments from $500,000-$3 million. Founder and Managing Partner Greg Sands started the firm after more than a decade of investing in cloud-based services, such as Allbusiness.com, Feedburner, Merced Systems, QuinStreet, and Youku.
Recognizing that angels and larger VCs are not always equipped to play an active and engaged, long-term role in nascent startups, Costanoa’s mission is to be a hands-on, value-added partner to early stage entrepreneurs in its core sectors. Costanoa is providing entrepreneurs with a combination of “right-sized” investments and hands on support from a high-quality institutional partner.
Costanoa’s portfolio has 10 investments to date, including: Datalogix, DemandBase, Guardian Analytics, Inflection, Intacct, iSocket, Lex Machina, LinkSmart, Return Path, and Risk I/O. Core themes and areas of expertise for Costanoa include:
Applied Big Data – finding ways to aggregate, curate and originate proprietary data and use it to create high value applications;
Leveraging the interplay between consumer and business, including consumer-driven interfaces and distributions strategies for enterprise products and Social/Mobile opportunities in the enterprise;
Cloud-based applications and infrastructure to support consumers and Mobile Internet, including marketing and monetization tools;
High-value consumer services with clear monetization strategies.
“Costanoa was started with the goal of identifying the most ambitious, talented and passionate entrepreneurs and turning their ideas into great companies,” said Greg Sands, Founder and Managing Partner of Costanoa Venture Capital. “Much of the venture capital that exists today is a momentum game, where investors comfortably ‘deploy capital’ into high-profile companies in high velocity sectors. At Costanoa, we are not chasing momentum, but trying to create it. By identifying and working in sectors before they are saturated, and by undertaking technical projects that require hard work, Costanoa is creating value for its portfolio of companies leading the data revolution.”
“Greg has always been an invaluable investment partner and trusted adviser,” said Matt Blumberg, Founder and CEO of Return Path. “In his work with Return Path, he has provided us with the guidance we need, while allowing us the room to operate, improve and ultimately succeed. We are very excited to be working closely with Greg and to be part of the Costanoa family.”
About Costanoa Venture CapitalCostanoa Venture Capital is an early stage investor focused on cloud-based services solving real problems for businesses and consumers by leveraging data and analytics. The firm’s name originates from the first inhabitants of Silicon Valley, the Costanoans, and harkens back to the origins of entrepreneurship and venture capital in Silicon Valley. Costanoa provides early stage entrepreneurs with a combination of “right-sized” amounts of capital and value-added support from a high-quality institutional partner. Current investments include: Datalogix, DemandBase, Guardian Analytics, Inflection, Intacct, iSocket, Lex Machina, LinkSmart, Return Path, and Risk I/O. The firm is headquartered in Palo Alto, Ca.
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