Paul Singh, a former partner at 500 Startups, is nearing a first close on a new $50 million venture fund that will use a data-centric approach to invest in Internet startups.
The fund, Crystal Tech Fund LP, plans to raise a total of $50 million, according to a regulatory filing. It is expected to hold a first close on at least $10 million or possibly the full amount in a matter of days, said a source familiar with the fundraising.
The fund has been in the market for about 60 days, talking primarily to corporate LPs and family offices, the source said. The minimum investment is $1 million, the source added.
Singh told Venture Capital Journal (a peHUB affiliate publication) that he was not at liberty to discuss the details of the fundraising. However, he did share details about his investment plans.
Look for Crystal Tech to announce its first deals in March. It plans to invest in one to two startups per month, with check sizes ranging from $250,000 to $1 million, Singh said.
He is focusing on what he calls “post-seed” companies that are stuck between the gap between seed and Series A rounds. “Rather than writing it off as the ‘Series A Crunch,’ I believe the investors that can systematically identify the most promising companies are positioned for great returns,” Singh wrote on his blog.
Singh is the sole general partner of Crystal Tech, but he will likely add some venture partners in the coming weeks, he said.
Photo of Paul Singh courtesy of Paul Singh.