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Biotechnology industries

Masthead Venture Partners Secures $160 Million First Closing, Navigates Challenging VC Fundraising Environment

Strategic Insights

— 1 min read

Masthead Venture Partners, a Cambridge, Mass.-based venture capital firm, has successfully closed its first fund with $160 million, setting the stage for a final closing target of up to $200 million. The fund will focus on investing in software and security firms developing products for corporations, as well as software startups targeting life sciences and healthcare. Brian Owen, a partner with Masthead, noted that the right size for an early-stage venture capital fund is typically between $150 million and $200 million, positioning Masthead for potential growth.

Key Takeaways:

  • Masthead Venture Partners has secured a $160 million first closing for its inaugural venture capital fund, with a goal to reach a final closing of up to $200 million.
  • The fund will focus on investing in software and security firms developing products for corporations, as well as software startups targeting life sciences and healthcare.
  • Brian Owen, a partner with Masthead, expects the fund to invest between $500,000 and $5 million in initial rounds over three to four years.
  • Masthead has operations in multiple locations, including Cambridge, Boston, Portland, Maine, and Summit, N.J., but plans to focus on investing along the Eastern seaboard and potentially other regions.
  • The firm has appointed a team of six partners, including Owen and two partners from Boardman Ventures, which merged with Masthead six months ago to increase its chances of raising money.
  • The merger with Boardman Ventures has allowed Masthead to acquire a Small Business Administration license, which ensures that the Small Business Administration will match $2 for each dollar raised.

Statistics:

  • Masthead Venture Partners has secured a $160 million first closing for its inaugural fund.
  • The fund is expected to reach a final closing of up to $200 million.
  • The fund will invest $500,000 to $5 million in initial rounds over three to four years.
  • Masthead operates in multiple locations, including Cambridge, Boston, Portland, Maine, and Summit, N.J.
  • The number of venture capital firms in the country increased from 87 in 1980 to 693 in 2000, according to research firm Venture Economics.

Sources:

  • "Masthead, Boardman Venture Partners Close Fund" by Katherine Goncharoff, TheDeal.com
  • National Venture Capital Association
  • Venture Economics
  • Boston University, Tuck School of Business
  • Fish & Richardson PC
  • www.TheDeal.com

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