St. Louis-based Cultivation Capital recently filed paperwork with the SEC indicating that it has raised at least $25.5 million out of a targeted $50 million for a third tech-focused venture capital fund. The paperwork indicates that “[t]he issuer is offering $50 million but has reserved the right to offer up to $100 million.”
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The firm has added its first female general partner, Heather Wood—a St. Louis-area corporate development veteran who has worked with Monsanto, Charter Communications, and, most recently, Cequel III—to the fund. Other individuals listed on the filing include Cultivation Capital’s managing partner Brian Matthews and general partners Cliff Holekamp, Barry Sandweiss, John True, and Timothy Stern.
Even if Cultivation Capital closes just $50 million for “Cultivation Capital Tech Fund III, L.P.,” it would be among the largest such funds the firm raised since its inception in 2012.
Cultivation Capital apparently began raising Tech Fund III shortly after announcing two new funds earlier this summer.
According to reporting by the St. Louis Post Dispatch, the venture firm raised a total of $33.45 million (out of a targeted $40 million) for Tech Fund II and $15.83 million (out of a targeted $30 million) for a second life sciences-focused investment vehicle back in May.
In addition to its sector-focused funds in life sciences and general technology, the firm raised a $5 million seed fund to invest in local St. Louis startups and at least $50.35 million (out of an authorized $100 million) for a fintech-focused fund over the past year.
Recently, the firm led a $2.3 million venture round for FinLocker and participated in digital marketing platform DemandJump’s $6 million Series A. This month, it participated in cybersecurity startup Bandura’s $4 million Series A round.
According to Crunchbase data, six companies from the firm’s portfolio have managed to find an exit. A number of Cultivation Capital’s portfolio companies have been acquired this month. These M&A exits include Intapp’s acquisition of DealCloud and Mediware Information Systems’s purchase of BlueStrata EHR, both for undisclosed sums. Additionally, Boston Scientific bought medical device maker Veniti—which had been a portfolio company since 2014—for $160 million.
St. Louis’s tech market moves along at a decent clip. Cultivation Capital is poised to capitalize on the favorable exit multiples enjoyed by Midwestern startups and, more broadly, the Midwest’s growing startup ecosystem.
Illustration: Li-Anne Dias
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