California-Based Venture Capital Firm Sets Up Shop In Austin, Scouting For Deals

AUSTIN, TX — A California-based venture capital firm has set up shop in Austin, and is ready to make some deals, according to published reports.

Santa Monica, Calif.-based March Capital Partners has opened a local office in downtown Austin at the same location housing Vast Inc., formerly the La Zona Rosa music venue, the Austin American-Statesman reported.

One of the members of the March Capital Partners executive team who used to work at Austin Ventures in the late 90s, Jim Armstrong, is well-known in the California venture community, sitting on board of directors in firms running the gamut from the established (PayPal) to the startup (Zowdow Inc., which creates "autocorrect" software aiding people typing on their cell phones, the Austin Business Journal noted.

Armstrong and other partners will be making regular visits to Austin scouting for deals, the Journal reported. Notwithstanding Armstrong's strong Austin ties, the local office marks the VC firm's first foray outside of California, the newspapers reported.

As it happens, Armstrong also is an investor in Vast, developer of a software and data platform easing customers through big-ticket purchases such as buying a car, according to his LinkedIn bio.

The Journal noted the VC firm recently closed on a $240 million debut fund last year, a deal that was the largest of its kind in Southern California history. Citing L.A. Biz, the Journal also noted the firm specializes in analyzing early-stage and later-stage investments—music to the ears of Austin entrepreneurs frustrated at the lack of startup funds available for those seeking big Series C and Series D funding, the ABJ notes.

According to startupfreak.com, a venture capital firm goes for the Series C round of funding when the company has proved its mettle and is a proven success in the market. It's a funding round when the company looks for greater market share, acquisitions, or to develop more products and services.

Financial Advisory defines Series D funding as the fourth stage of the seed stage financing cycle related to a new firm's growth. This round is generally earmarked for financing a special situation for the business, such as a merger or acquisition.

While its move to Austin is new, the company's seed money already has been planted locally with the firm's participating in arranging $2.5 million in startup funds raised by cybersecurity startup SpyCloud Inc., the business journal reported.

>>> Image via Shutterstock