Austin Ventures veterans start growth firm Elsewhere Partners

A pair of Austin Ventures veterans announced they have started Elsewhere Partners, a Texas-based growth-stage firm targeting business software companies outside the country’s traditional venture-capital hubs.

The investors, Chris Pacitti and John Thornton, both general partners at Austin Ventures and now partners at Elsewhere, are joined by Sam Kentor, formerly with JMI Equity.

Elsewhere so far has invested $30 million, though it did not release the size of its fund in a press release. It said it will typically make seven-figure investments in companies with at least a $4 million revenue run rate and growth of at least 40 percent. Targets will generally have raised less than $10 million of prior funding.

Portfolio companies include Atlanta-based Itential, Relatient from Nashville, Vancouver-based Tasktop and Vyopta from Austin. The firm is looking for deals in Denver, Charlotte, Chicago, Dallas, Phoenix, Pittsburgh, Raleigh-Durham area, Salt Lake City, Toronto and Washington D.C.

“As more private-equity firms look to acquire software companies, the exit model for venture-backed startups is ripe for radical change,” Thornton said in the release.

Elsewhere said it places operating advisors on the boards instead of partners.