COVID is worse for people with heart disease, and damages the heart for those who had the virusRead more...
Investor in Twitter, Turntable.fm, and other notable start-ups seeking to close $50M fund
Chris Sacca, the former Googler known for his early investment in Twitter and other sound bets, has apparently been pretty successful with his investments that he's on the road raising more capital for his second fund.
Lowercase Spur, which opened in late 2011, is now soliciting new investors, according to a memo obtained by Bloomberg News. Each new investor in the fund must commit a minimum of $250,000.
Sacca is targeting $50 million for this new fund and expects to close it by next month, according to Bloomberg.
Sacca, who's been bestowed with accolades like "the most influential businessman in America" and the "youngest member of the Forbes Midas List," declined to comment for this article.
The memo goes on to disclose that Lowercase Spur has already invested $2.88 million in 10 companies, including Turntable.fm, a music sharing website founded in January 2011; Uber Technologies., a San Francisco mobile private car service founded in 2011 (which received half of the invested capital), and FanBridge Inc., an online marketing firm, according to the memo.
Part of the rationale behind the new fundraising is to invest in the companies already in Sacca's first fund.
In 2010, Sacca’s first fund, called Lowercase I, raised under $10 million, according to the memo. Sacca apparently transferred some of his angel holdings, including Twitter, into that fund.
“Lowercase I currently has what we believe are eight to 10 outstanding companies that are likely to generate anomalous returns,” the memo says. “We anticipate that Lowercase Spur will be able to participate in such follow-on financings where Lowercase I simply cannot due to its size, investment strategy and allocation model.”
After investing in these startups, Lowercase Spur will collect a 10%t management fee for the first two years. The memo also said that Sacca will also keep 25% of the fund’s net profits, with the rest going to the fund's partners.
(Image source: Businessweek.com)
Support VatorNews by Donating
Read more from our "Trends and news" series
The transaction will value the company at $1.05 billionRead more...
The company saw its revenue more than triple in 2020, as therapy sessions increased 6,000%Read more...