Next Frontier Capital collects $22 mln for sophomore fund


Next Frontier Capital has raised $22 million for its second fund. The current target is $30 million. Based in Bozeman, Montana, the venture firm backs tech companies that are in the state.

PRESS RELEASE

BOZEMAN, Mont., Oct. 17, 2017 /PRNewswire/ — Today, Next Frontier Capital announced the successful first close of Fund II with $22 million in LP Subscriptions. The Fund II target is $30 million.

Will Price, Founder and General Partner, noted “the first close enables us to continue to execute on our mission to invest in companies of impact, utility, and value. With the first close complete, we turn our attention to a healthy pipeline of Fund II prospective investments, while maintaining focus on building value across our ten Fund I companies. The first close of Fund II is constituted by Fund I LPs. We are humbled by their vote of confidence, which we attribute to the value our founders and management teams are creating.”

Next Frontier Capital’s Fund I investments are SiteOne Therapeutics, Submittable, Clearas, Quiq, Orbital Shift, IronCore Labs, Phoenix Labs, Blackmore Sensors, OppSource, and Remix Labs; with $10m invested to date across ten companies, nine Montana related, with an additional $42m invested from co-investors. The balance of Fund I is reserved for follow-on investments in the current portfolio.

Richard Harjes, General Partner, commented, “Since our founding in 2015, we have quintupled the amount of capital being invested in MT entrepreneurs and are proud to have tier one firms, such as Venrock, True Ventures, Amgen Ventures, Millennium Technology Value Partners, and others as co-investors in MT companies. The capital we invest is driving company growth, with nearly 100 net new jobs created in Montana at an average annual wage of $106,000. NFC Fund I validated our thesis that Montana is home to quality entrepreneurs previously ignored by the broader venture market. It showed that investment opportunities exist to source, lead, and syndicate venture class deals in MT, and that top tier firms will co-invest with us. We expect Fund II to broaden and solidify this initial success.”

Morton Meyerson, Founder of the 2M Companies, former CEO of EDS and Perot Data Systems, former CTO with General Motors, and a Limited Partner in both NFC Funds, remarked, “Our family has invested with NFC for three reasons: excellent performance, excellent and open communications with investors, and a chance to invest in and help new Montana companies.”

“Submittable existed for 5 years before NFC started and found raising capital in Montana next to impossible,” said Michael Fitzgerald, co-Founder and Chief Executive Officer of Submittable, based in Missoula, Montana. “Shortly after NFC arrived in 2015, we partnered with them and have since dramatically increased our growth rate — 300% both in revenue and headcount. Their investment also attracted additional investment from Silicon Valley firms who wouldn’t have previously been looking to Montana for opportunities. It’s fair to say NFC has singlehandedly leveled the playing field for Montana startups.”

“The job creation and economic catalyst that Next Frontier Capital has provided for Montana continues to demonstrate how much needed risk capital can drive innovation and growth in our tech sectors,” said Stan Abel, President and Chief Executive Officer of SiteOne Therapeutics and Chairman of the Montana Bioscience Alliance. “The diverse portfolio of the firm demonstrates the excellent investment opportunities in Montana. We are proud that SiteOne Therapeutics is a part of the Next Frontier family and value their support and guidance as we continue to advance our portfolio of non-opioid pain therapeutics.”

CB Insights recently recognized Next Frontier Capital as the most active venture investor in MT, a state poised to benefit from fast-growing technology entrepreneurship. Price noted, “We believe that Bozeman and Missoula are well on their way to becoming the next Boulder or Provo, places where industry-defining companies can be built with a quality of life not found in major urban markets.”

About Next Frontier Capital
Next Frontier Capital partners with mission-driven, talented entrepreneurs to build Montana technology companies of national impact, utility and value. Founded in 2015, the Firm is backed by a well-diversified pool of investors, endowments, foundations, and executives from the world’s top technology and financial firms, who join us in recognizing the region’s extraordinary growth in technology deal flow. Next Frontier Capital is based in Bozeman, Montana.

The fund has made ten investments to date: SiteOne Therapeutics, Submittable, Clearas, Quiq, Orbital Shift, Phoenix Labs, Blackmore Sensors and Analytics, IronCore Labs, OppSource, and Remix Labs. The Fund has invested $10m to date and attracted an additional $42m in co-investment from leading firms, and first time MT investors, such as Venrock, True Ventures, Amgen Ventures, Millennium Technology Value Partners, and others, thereby quintupling the amount of capital available to Montana founders.

More information available at www.nextfrontiercapital.com