The new fund, which has a targeted size of $75 million to $100 million, will make early stage investments in technology companies in Western Pennsylvania, Ohio, Michigan and other parts of the Midwest. The firm has closed on about $40 million so far, principally from institutional limited partners who invested in its prior funds.
“We think it’s a very opportunistic time to have a new fund,” says Mike Stubler, a managing director at Draper Triangle, who says that a number of regional programs for seeding and supporting entrepreneurs have helped prime the deal flow pipeline. At the same time, there are not very many VCs in the area, which helps moderate competition for deals and keep valuations in check.
To date, Draper Triangle has invested in 37 companies, with the highest concentration in the Pittsburgh area, followed by Ohio. Recent investments include BodyMedia, a provider of wearable body monitoring systems, CardioInsight Technologies, a developer of electrocardiographic mapping technology, and OnShift, a developer of communication platforms for hospital employees initially backed by JumpStart, a Cleveland-based accelerator. The partners’ focus is in the IT, medical devices and advanced materials sectors.
The firm has had a few exits to date as well. These include Renal Solutions, a provider of dialysis products acquired for $200 million in 2007, and Carnegie Learning, a publisher of math curricula acquired by Apollo Group in 2011.
Draper Triangle is adding a partner for the new fund. Will Indest, a former CEO of TechColumbus Investments, an organization to support technology entrepreneurs in Central Ohio, will join the firm as managing director in its recently opened Columbus office. Prior to TechColumbus, Indest took part in founding the $150 million Ohio Capital Fund, a seed stage fund of funds, and in managing angel investment funds.
The firm raised its last fund, the $70 million Draper Triangle Ventures II, in 2004, according to Thomson Reuters.
Image courtesy of Draper Triangle Ventures.