Almost exactly two years ago, San Francisco-based Homebrew began investing its maiden fund with $35 million of seed capital. Last Friday, it unveiled a big increase in firepower: $85 million in new money split between a second seed fund and a follow-on fund for primarily B rounds deals. In a blog post, the two-investor firm led by partners Hunter Walk and Satya Patel said it raised $50 million for Homebrew II and $35 million for Moonshine. “In this funding environment, for both companies and VCs, there’s a temptation to maximize how much capital you raise,” according to the blog post. “We raised less than we could have, but as much as we wanted, given our strategy and approach.” The roughly 2.4x increase in capital and the rapid return to fundraising is in keeping with the phase of the up-cycle the industry is in. Homebrew is not alone in asking LPs to pony up more money at a faster pace. What’s interesting is its intent to deploy seed dollars at a speed similar to its first fund. The new fund is “slightly larger than our first fund because we intend to deploy entry capital over a 30 (to) 36 month period, whereas we invested the initial fund in 24 months,” the firm said. Initial check size will typically be between $500,000 and $1 million as part of a $1 million to $3 million funding, not unusual for a Silicon Valley seed deal these days. The firm said it hopes to play a “leadership role in first institutional financings.” The big departure is Moonshine. Moonshine lets Homebrew extend support for portfolio companies primarily to Series B rounds and beyond. Homebrew didn’t have a scale-up fund before. The firm has invested in 17 companies in its two years. Among them are Shyp, Pillow and Nuzzel. Photo courtesy of Shutterstock.
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Homebrew raises $85 mln in capital for seed and growth deals
Tilson Technology Management, a provider of information technology professional services and network construction solutions, has raised $2.2 million in funding. The investors were Rand Capital Corp and CEI Ventures Inc. PRESS RELEASE BUFFALO, N.Y., Feb. 18, 2015 (GLOBE NEWSWIRE) — Rand Capital Corporation (Nasdaq:RAND) (“Rand”), a business development company that makes venture capital investments in companies with emerging product, service or technology concepts, announced that it has recently invested $600,000 as part of a $2.2 million equity capital infusion in Tilson Technology Management Inc. (“Tilson”). Tilson is an information technology (“IT”) professional services and network construction company. Rand’s primary co-investor is CEI Ventures, Inc., a venture capital fund focused on socially responsible businesses demonstrating rapid growth. Tilson, a veteran-owned business, operates in two fast growing, and service capacity constrained markets: 1) telecommunications facilities development for cellular, smart grid and government; and 2) consulting, software development and information systems deployment specializing in construction applications. Recognized for its sustained high growth and profitability, Tilson has been on the prestigious “Inc. 5000″ list of fastest-growing private U.S. companies for four consecutive years from 2011 through 2014. Daniel P. Penberthy, Rand’s Executive Vice President, commented, “Rand was attracted to this investment because of Tilson’s unique expertise and position in their marketplace, strong execution skills and further growth potential. Since its origin in 1997, the business has developed a niche position in the IT and construction market which supports the explosive growth in mobile data consumption. Tilson’s proficiency and agility makes them uniquely qualified to service some of the world’s largest telecommunications companies. Also, Tilson has become one of the largest service providers in upstate New York from their Syracuse office and we like to support upstate businesses.” Joshua Broder, Chief Executive Officer and majority owner of Tilson, added, “This infusion of capital will allow us to continue our growth trajectory. We’re making inroads in new markets organically and also see opportunities to grow through acquisitions of adjacent businesses. We welcome Rand’s expertise as we take Tilson to the next level.” This is a follow-on investment for CEI. Nathaniel V. Henshaw, Managing Director of CEI Ventures, concluded, “CEI has been a long-time supporter and investor in Tilson. We have been impressed with the management team led by Josh Broder, who is guiding this company through its dynamic growth.” Rand has had a co-investment partnership with CEI Ventures since 2004 in two other New England portfolio companies. ABOUT CEI VENTURES CEI Ventures manages socially responsible venture capital funds. The company was founded in 1994 to mobilize private capital markets while advancing social goals. CEI invests in innovative companies exhibiting rapid growth, dynamic transformation or emergence. CEI builds partnerships with passionate entrepreneurs and quality management teams with relevant experience, visionary leadership and deep commitment. ABOUT RAND CAPITAL Rand Capital (Nasdaq:RAND) provides investors the opportunity to participate in venture capital opportunities through an investment in the Company’s stock. Rand is a Business Development Company (BDC), and its wholly-owned subsidiary is licensed by the U.S. Small Business Administration (SBA) as a Small Business Investment Company (SBIC). Rand focuses its investments in early or expansion stage companies with strong leadership that are bringing to market new or unique products, technologies or services that have a high potential for growth. Additional information can be found at the Company’s website where it regularly posts information: www.randcapital.com.
Tilson nets $2.2 mln
San Francisco-based Postmates, an on-demand delivery service, has raised $16 million in Series B funding. Spark Capital led the round. In conjunction with the funding, Nabeel Hyatt of Spark Capital has been added to Postmates’ board of directors. PRESS RELEASE SAN FRANCISCO February 18, 2014 Postmates, the leading ondemand delivery service, announced today that it has raised an additional $16 million in capital for its Series B financing round to support its dramatic growth and expand geographically. The latest round was led by Spark Capital with followon from existing investors. Nabeel Hyatt, Venture Partner at Spark Capital, will join founders Bastian Lehmann and Sean Plaice on the company’s Board of Directors along with Scott Banister. “We’re currently averaging thousands of deliveries per week. Customers who order more than 10 times permonth contribute to more than 30% of order volume? customers who order more than 5 times per month contribute to more than 50% of order volume,” said Bastian Lehmann, CEO and cofounder of Postmates. “More importantly, is how quickly our supply is growing. We have nearly 2,000 active Postmates couriers on the platform in our four markets.” Since closing its Series A funding in December of 2012, Postmates has developed its own proprietary logistics software that successfully dispatches and guides couriers through major metropolitan areas to deliver local goods including prepared food, groceries and retail goods. The company has forged partnerships and promotional campaigns with merchants in San Francisco, D.C., Seattle and New York, including Whole Foods, Momofuku Milk Bar, Hapa Ramen and The Meatball Shop, among others. “We are experiencing remarkable growth and strong national demand for our mobile platform,” said Lehmann. “This new round of financing and group of investors with their proven success in identifying potentially successful consumer products such as Twitter, Foursquare and Tumblr will guide us through this critical growth stage. With Spark’s support, we’ll continue to push the boundaries of ecommerce and logistics within local markets.” This investment will enable Postmates to strengthen its position as the industry leader in sameday delivery. The company plans to improve its understanding of local inventory and aggressively invest in their operations, design and engineering teams to meet increasing domestic and international demand for the product. “We’re thrilled to be partnering with Postmates. They have a magical product and have proven this past year they know how to handle incredible growth while keeping quality high,” said Nabeel Hyatt, Venture Partner at Spark Capital. “Bastian and his team have created a service that not only puts your city in the palm of your hand, but it also does that while helping support the local businesses that make a city what it is.” Postmates previously closed a $5 million Series A round from FoundersFund and received a $1.75 million seed round with SoftTechVC, Matrix Partners, Scott Banister, Naval Ravikant, Russel Simmons, Thomas Korte, Shervin Pishevar, Dave Morin, and David Sacks participating amongst others. The Series B brings Postmates’ total funding to just over $22 million.About Postmates: Postmates is transforming the way local goods move around a city by enabling anyone to get any product delivered in under one hour. Postmates’ revolutionary urban logistics & ondemand delivery platform connects customers with local couriers, who purchase and deliver goods from any restaurant or store in a city. Postmates’ mission is to become the ondemand delivery infrastructure for every major city in the world. Postmates was cofounded by Sam Street, Sean Plaice and Bastian Lehmann in 2011, and is headquartered in San Francisco with additional offices in London, Seattle and New York. Postmates is free to download from the app store or by visiting: www.postmates.com About Spark Capital Spark Capital is a venture capital firm that partners with exceptional entrepreneurs seeking to build disruptive, worldchanging companies. Founded in 2005, the firm manages approximately $1,500,000,000 across four funds. Headquartered in Boston, Spark maintains an office in New York and invests across the globe. Spark Capital focuses on Internet and mobile investments across the following key categories: advertising & monetization, commerce & services, content & media, financial services, hardware & infrastructure, mobile and social. For more information, visit www.sparkcapital.com
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Spark Capital backs on-demand delivery service Postmates
The Blackstone Group said Monday it raised $4.5 billion for its second energy-focused private equity fund. The limited partners for Blackstone Energy Partners II include U.S. state pension funds, corporate pension funds, sovereign wealth funds, insurance companies, endowments, foundations and family offices. Demand for Blackstone Energy Partners II, which was oversubscribed, surpassed the pool’s $4.5 billion hard cap, Blackstone said. BEP’s previous fund closed in September 2012 at $2.4 billion. BEP I generated an average IRR of 38.20 percent and an average multiple of 1.65x as of Sept. 20, 2014, performance data from alternative asset data provider Bison said. As in the case of its previous fund, BEP II will focus on companies, assets and development projects worldwide in the energy and natural resources sector. Blackstone said it has deployed over $8 billion in this space, said the company. Photo courtesy of Shutterstock.
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Blackstone closes second energy fund at $4.5 bln
Homebrew has closed its second seed fund at $50 million, the company said in a blog post. Homebrew II’s focus will be on backing “hyper-growth” companies. According to Homebrew, it will deploy capital from this fund over a 30- to 36-month period. Two years ago, the company garnered $35 million for its initial seed fund. In addition to Homebrew II, the company has raised $35 million for Moonshine, a separate fund that will focus on making follow-on fundings. To read the announcement, visit here.
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Homebrew raises $50 mln for second seed fund
Triloma Financial Group and EIG Global Energy Partners have launched Triloma EIG Global Energy Fund, a joint venture that will invest in energy debt. Triloma Energy Advisors and EIG Credit Management Company will manage the fund. PRESS RELEASE ORLANDO, Fla. and WASHINGTON, Feb. 23, 2015 /PRNewswire/ — Triloma Financial Group (“Triloma”) and EIG Global Energy Partners (“EIG”) today announced the formation of Triloma EIG Global Energy Fund (the “Fund”), an unlisted investment company that will invest primarily in a global portfolio of privately originated energy company and project debt. The Fund will be managed by Triloma Energy Advisors and EIG Credit Management Company, and will seek to raise capital with the issuance of common stock through a best effort, continuous public offering with Triloma Securities, member FINRA/SIPC, serving as the managing dealer. “Our creation of this Fund with EIG represents a significant milestone in Triloma’s strategy of identifying unique alternative investment opportunities and creating longstanding joint ventures with experienced and proven investment partners,” said Larry Goff, Chief Executive Officer of Triloma Securities. “Partnering with EIG allows us to provide individual investors with unparalleled access to energy investment opportunities with one of the oldest and preeminent energy investors in the world.” “The energy sector is a voracious consumer of capital and is tailor-made for specialists like EIG that can provide privately-negotiated financial solutions,” said R. Blair Thomas, Chief Executive Officer of EIG. “Current market volatility only serves to increase the opportunity set as generalists exit the space and companies find themselves with funding gaps caused by lower commodity prices and commercial banks pulling back due to regulatory and market pressure. Our 33-years of experience in this space give us confidence that now is an attractive time to create the Fund to take advantage of current market dynamics. Triloma’s team has a strong distribution and asset management platform and extensive experience with publicly registered investment programs, and will allow us to attract a broader range of investors to our platform.” Barry Goff, Managing Director of Triloma, said: “We believe energy companies and projects are underserved by traditional sources of financing. In order to take full advantage of the current market environment, it is essential to have experience investing across many commodity cycles and the in-house technical capabilities necessary to successfully navigate the complexities in the energy sector. EIG’s experience and expertise will allow us to take advantage of investment opportunities throughout the energy value chain on a global basis.” About Triloma EIG Global Energy Fund Triloma EIG Global Energy Fund (the “Fund”) is an unlisted investment company that will primarily invest in a global portfolio of privately originated energy company and project debt. Its investment objective will be to provide shareholders with current income, capital preservation and, to a lesser extent, long term capital appreciation. The Fund will be managed by Triloma Energy Advisors and EIG Credit Management Company, and will offer individuals an opportunity to invest in U.S. and non-U.S. energy companies and projects in many instances alongside institutional investors. Investments will be made through a series of feeder funds each of which will invest substantially all of the net proceeds its raises from its public offering in the Fund. About Triloma Triloma Financial Group is a leading private investment management firm providing individuals with unique alternative investment opportunities. Its business is organized primarily into investment management and capital markets activities. Triloma manages and sponsors a group of private and publicly-offered investment programs focused on private equity, real estate and energy investments. The team has experience and deep relationships in the broker-dealer community, allowing for a streamlined process to bring the individual investors unique investment opportunities that typically have been available only to institutional investors. For additional information, please visit www.triloma.com. About EIG EIG specializes in private investments in energy and energy-related infrastructure on a global basis and has $14.2 billion under management as of December 31, 2014. During its 33-year history, EIG has invested over $18.5 billion in the sector in more than 300 projects or companies in 35 countries on six continents. EIG’s clients include many of the leading pension plans, insurance companies, endowments, foundations and sovereign wealth funds in the U.S., Asia and Europe. EIG is headquartered in Washington, D.C. with offices in Houston, London, Sydney, Rio de Janeiro, Hong Kong and Seoul. For more information, visit www.eigpartners.com.
Triloma and EIG form energy debt fund