Tacora Capital’s Venture Debt Journey Continues with $268.7 Million Fundraise
Tacora Capital, an Austin-based firm renowned for its expertise in venture debt, has successfully secured $268.7 million for its second fund, as revealed in a recent SEC filing. This follows their inaugural 2022 fund, which raised approximately $350 million, notably including a substantial $250 million investment from Peter Thiel, the influential billionaire known for his Republican affiliations. Bloomberg previously highlighted this as an “unusually large investment” for Thiel.
The latest filing does not clarify whether Thiel has participated in this new fund, mentioning only 28 unnamed investors. Tacora’s founder and CEO, Keri Findley, opted not to comment on Thiel’s involvement, and representatives for Thiel have yet to respond to inquiries from TechCrunch.
“The new fund reflects the successful deployment of the inaugural fund and demand for ‘flexible, non-leveraged’ financing solutions,” Findley shared with TechCrunch.
{Keri Findley, Founder and CEO of Tacora Capital}
- Tacora was founded in 2021 and is based in Austin, Texas.
- Keri Findley was introduced to Thiel through his venture capital firm, Thiel Capital.
- Venture debt provides cash loans to startups without diluting equity.
In a world where startups often grapple with cash flow challenges, venture debt can be a lifeline for founders keen to maintain control over their companies. Tacora’s focus is on lending to businesses with substantial capital needs, such as those in fintech and hardware sectors. While Findley refrained from naming specific companies backed by Tacora so far, she underscored the firm’s commitment to securing loans against “specific, strong assets owned by well-positioned companies,” as stated in their first fund’s press release.
The venture debt landscape poses its own risks; startups can struggle to repay loans due to high cash burn rates. However, Tacora’s strategic approach aims to mitigate these risks by carefully selecting asset-backed opportunities.
As Tacora Capital continues to carve its niche in venture debt financing, its latest fundraise marks another chapter in empowering startups with flexible financial solutions without compromising their ownership stakes. It will be intriguing to see how they navigate and grow within this dynamic financial domain.
