Next Coast Ventures Raises $310M to Invest in Entrepreneurs Across ‘Next Coast’ Markets

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03/29/2022 - 09:00 AM

Austin-headquartered venture capital firm has raised $310M in new capital and now has more than $520M in assets under management (AUM) in just six years
Next Coast’s thematic investing approach targets Texas and other emerging technology hubs
Since its inception in 2016, Next Coast Ventures has had multiple exits and has invested in several standout technology companies across the U.S.

AUSTIN, Texas--(BUSINESS WIRE)-- Next Coast Ventures today announced the closing of $310 million in capital across three different funds. With a focus on entrepreneurs on the “Next Coast” of innovation, Austin-based Next Coast has become one of the fastest-growing venture capital firms in Texas, raising more than $500 million in just six years.

Next Coast Ventures team (Photo: Business Wire)

“Reaching half a billion dollars in assets under management is a real milestone for us, and we owe a debt of gratitude to the amazing entrepreneurs whose success enabled us to get here,” said Mike Smerklo, Next Coast Ventures’ co-founder and managing director. “These new funds will support entrepreneurs along different paths, whether building businesses from scratch or through the entrepreneurship-through-acquisition or ‘search fund’ model.”

Multiple exits from the first two funds have validated Next Coast’s investment approach, including:

AlertMedia, an Austin-based company that offers emergency warning communications services, sold a controlling stake to Vista Equity Partners in March 2021.
Tenfold, an Austin-based customer experience integration platform, was sold to LivePerson (NASDAQ: LPSN) in October 2021.
Chargeback, a Salt Lake City-based real-time dispute management for merchants, was sold to Sift in May 2021.
Navegate, a supply chain management and third-party logistics services company headquartered in Mendota Heights, Minnesota, was sold to Radiant Logistics (NYSE MKT: RLGT) in December 2021.
Other notable exits include Clarity Money (sold to Goldman Sachs in 2018), OnRamp (sold to LightEdge in 2018) and Dosh (sold to Cardlytics - NASDAQ: CDLX in 2021).

High-growth, innovative businesses in Next Coast Ventures’ current portfolio include:

Everly Health (Austin): A provider of comprehensive diagnostic services for both consumers and enterprises, the company has grown rapidly and now serves over 20 million lives and 250 enterprise customers annually.
ICON (Austin): The builder of 3D-printed homes raised an additional $185 million in a round led by Tiger Global Management in February. The latest round brought ICON’s total equity raised to $451 million.
GOJA (Miami): An industry leader in creating, buying, and scaling Amazon-focused brands.
Enboarder (Austin): A developer of an onboarding platform that allows employers to create engaging experiences for new employees raised $32 million in Series B funding in February, bringing its total investment to $50 million.
UpEquity (Austin): A tech-enabled mortgage platform closed $50 million in funding in October 2021, increasing its total funding to $77 million.
Other notable investments include Austin companies BOXT, BrainCheck, Diligent Robotics, First Dollar, Osano, Stoplight and TrustRadius.

Three Funds to Support Innovation Across ‘Next Coast’ Technology Hubs

The $310 million in capital was raised across three funds:

Next Coast Ventures III, the largest of the funds, raised $195 million to invest in and support early-stage tech businesses and entrepreneurs.
A $50 million opportunity fund, NCV Select I, will enable the firm to continue to support companies from Funds I, II and III.
Next Coast ETA raised $65 million for entrepreneurs to acquire, manage and eventually exit small and medium-sized businesses.

Building a Team of Former Entrepreneurs to Support Today’s Entrepreneurs

Next Coast boasts a strong investment team with years of hands-on operational experience. Every investing partner has been an operator at some point in their career and can support different aspects of the company-building journey from their own unique perspective. The firm also provides founders access to the Next Coast Ventures Expert Network, a collection of more than 150 top executives who offer advice and mentorship.

Kaitlyn DeBernardo recently joined Next Coast as a Partner and the Head of Platform to further enhance its ability to support entrepreneurs within its portfolio with hands-on operational expertise.

“We are grateful for this opportunity to work with inspiring entrepreneurs to continue to produce top-quartile returns for our investors,” said Thomas Ball, co-founder and managing director of Next Coast Ventures. “In addition to the strong re-up rate from our existing investors, we are also pleased to welcome new investors to Next Coast funds, including university endowments, pension funds and family offices.”

About Next Coast Ventures

Next Coast Ventures is an Austin-based venture capital firm that partners with bold entrepreneurs building innovative companies in big markets. It provides early-stage capital to high-growth startups in “Next Coast'' markets, using macro trends and themes to guide its investment strategy. Next Coast provides its growing group of portfolio companies with hands-on help, Company Building Playbooks, a robust Expert Network, and the founders’ own experiences as entrepreneurs and operators. Next Coast ETA, founded in 2020, invests in the best and the brightest future CEOs, helping them find, run and grow a business to outsized returns in the lower- to middle-market. Learn more at nextcoastventures.com.