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Dallas-based TXV Partners targets $50M for its debut fund – TechCrunch

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Marcus Stroud and Brandon Allen met six years ago as roommates at Princeton University. The pair bonded over a common interest and a shared dream: to be venture capitalists.

“We were at a lecture and there were a couple VCs on campus speaking,” 25-year-old Stroud told TechCrunch. “Being a kid from a small town in Texas, Princeton was already a huge culture shock, but hearing about a world of VC, investment banking and private equity just really intrigued me.”

In 2016, Stroud and Allen graduated. Stroud, a former linebacker on the Princeton football team, went off to Wall Street where he was a fixed income analyst, and then to Austin, where he joined the alternative asset manager Vida Capital to learn the ins and outs of investing. Twenty-four-old Allen, meanwhile, clocked in about two years as a consultant.

It didn’t take long for the aspiring VCs to find their way back to each other to finally start on the project they had discussed in their dorm room. Over the last several months, Allen and Stroud have been quietly building a Dallas-based venture firm called TXV Partners . Their lofty target: $50 million, which would be the largest fund ever for an all-black line-up of general partners, an especially notable feat given Allen and Stroud are located in a market largely ignored by the storied VC firms of Silicon Valley.

TXV co-founder and general partner Marcus Stroud

Building the next great VC hub

Stroud and Allen plan to spend the $50 million on millennials. That is, millennial-friendly startups in the consumer, fintech and blockchain verticals, of which they’ll provide between $500,000 and $3 million in equity funding. So far, they’ve invested in one company, an Austin-based blockchain music platform called Matter Music.

Thanks to Stroud’s time on Princeton’s football team and his father, who is a former NFL player, TXV has tapped some athletic talent to support the fund and its portfolio companies. Former NFL player and Northgate Capital managing director Brent Jones is a mentor, and the firm’s advisors include athletes-turned-investors Torii Hunter and Steve Wisniewski, a former professional baseball player and NFL player, respectively.

A rapid transit train (DART) with the skyline of Dallas, Texas in the background

Allen is leading the firm’s Dallas office and Stroud is scouting full-time for startups in Austin, which is already a well-known source of tech talent.

“We wanted to be part of the next great VC hub,” Allen told TechCrunch. “We felt like it made sense and we felt comfortable in Texas. The thought of moving to San Francisco was out of reach for us. Texas has the opportunity to be at the forefront of what the next generation of technology will look like.”

With large universities feeding the talent pool, Texas has the potential but has yet to fully emerge as a force to be reckoned with for technology investors, even with the buzz surrounding Austin’s rising startup ecosystem. So far this year, companies headquartered in Texas have raised roughly $2.5 billion, on par with levels seen in the state in recent years, according to PitchBook. California startups, for context, have raised more than $50 billion this year.

Texas has the opportunity to be at the forefront of what the next generation of technology will look like. TXV co-founder Brandon Allen

In Austin this year, startups have pulled in $1.4 billion, just north of the $1.3 billion in total capital commitments in 2017. Dallas startups, for their part, have raised just $600 million across 87 deals. Deal count in Dallas actually looks to be dropping, hitting 173 in 2013, 143 in 2016 and falling down to 106 last year, but localized funds like TXV’s may help push the city’s tech scene forward.

‘For Texans, for African Americans and for millennials’

Stroud and Allen are not only first-time general partners of what may become a multi-million-dollar VC fund, but they’re also two African Americans in a field dominated by white men. For them, it’s high stakes and failure is not an option.

VC is known for its lack of diversity. Indeed, 81 percent of VC firms don’t have a single black investor, according to data collected by Richard Kerby, a partner at Equal Ventures. Roughly 50 percent of black investors in the industry are at the associate level, or the lowest level at a firm, and only 2 percent of VC partners are black.

Base10 Partners’ $137 million fund, announced in September, is the largest black-led VC fund to date, but only one of the two general partners are black. Based in San Francisco, Base10 is run by two veteran investors with a well-established network in the Bay Area. The challenges for TXV are much larger, and the barriers may be much tougher to overcome.

“We’re young, black and in Texas,” Allen added. “We’re trying to do it differently. We wanted to really see if we can redefine the VC model from the bottom up. It’s important for Texans, for African Americans and for millennials.”

Brandon Allen and Marcus Stroud want to bring more diversity to venture capital

Allen was raised in New England and Stroud in Prosper, Texas, a small town outside of Dallas. Neither of them comes from wealth, as many Stanford-educated Silicon Valley elite do. They’ll have to put a lot of blood, sweat and tears into TXV, but if they succeed — and even if they don’t — they’ll have helped paint a new archetype for VCs.

“African Americans aren’t that well represented on either side of the table as an investor or a startup founder,” Stroud said. “I think, if anything, that doesn’t discourage us, it just makes us feel proud and empowered that we have an opportunity to help cultivate a fund that is majority minority-led. It’s something that fires me up.”

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The First Tesla Semi Has Been Delivered After Lengthy Delays

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There had long been suggestion Pepsi would be one of Tesla’s biggest customers — with a subsidiary spotted installing charging stations at one of its plants and test driving the trucks earlier this year. Tesla also placed an order for 100 of the high tech trucks shortly after they were announced in 2017. In October, Musk confirmed the company’s first truck was almost ready for delivery, and it would be going to the soft drink manufacturer.

Today, Tesla finally made it official and delivered its first production semis to Pepsi. Speaking at the handover, which took place at a Tesla Gigafactory in Nevada, Musk described his motivation for designing the truck. The Tesla CEO claims that trucks make up less than 1% of vehicles in the United States, but are responsible for a large chunk of emissions. Musk said it will both help the environment and improve the health of individuals living near highways. At the end of the presentation, Musk thanked Pepsico and described them as a “great partner.” 

The trucks’ keycards were then handed over to Pepsi’s representatives, followed by several high fives. The trucks’ first cargo run involved “an enormous amount of Frito Lays” which were handed out to people in attendance. Pepsi’s Kirk Tanner then took the mic and said: “I want to thank the people who have spent countless hours to make this a reality.” before thanking Elon Musk and the other Tesla representatives. Other companies are also interested in Tesla’s electric semi. Budweiser, Walmart, and UPS are amongst those who have placed pre-orders — with Budweiser ordering at least 40 of the large electric vehicles.

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Kanye West Is No Longer Buying Twitter-Rival Parler

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It’s unclear whether West’s recent controversies have anything to do with the Parler deal falling apart. In a statement shared with CNBC, Parler’s owner notes that the “decision was made in the interest of both parties in mid-November.” Parler says it will be on the lookout for the growth opportunities, without clarifying if it was looking for investors to scale up, or full-fledged buyers. The latter seems unlikely to happen, given the current state of layoffs in the tech industry and the looming fears of a recession.

Parlement Technologies reportedly had high hopes from its acquisition deal with Kanye West. Soon after the agreement press release went out, Parler sent out an email to its “VIP” users, offering them perks like a gold badge for being valuable personalities on the platform. Politico reports that the email campaign inadvertently revealed the personal contact information of nearly a dozen lawmakers and some well-known conservative personalities.

Citing an insider source, Axios reports that West’s unstable financial situation following the cancellation of lucrative deals with the likes of Adidas played a role in his Parler plans falling apart. In the meanwhile, West has returned to Twitter, after his account was restricted for a few weeks ago over sharing anti-Semitic remarks. West currently has a huge follower base of over 18 million on Twitter, which dwarfs the total number of users on Parler, as of December 2021.

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Elon Musk Says Twitter’s Potential Removal From iOS App Store Was ‘Misunderstanding’

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Barely two days after Elon Musk feuded with Apple publicly, he met with Tim Cook to settle the differences. “We resolved the misunderstanding about Twitter potentially being removed from the App Store. Tim was clear that Apple never considered doing so,” Elon Musk tweeted last evening. This was a few hours after he shared a video of Apple’s HQ to disclose the location of the meeting.

However, Elon Musk didn’t reveal if Apple will continue advertising on Twitter. According to the Washington Post, Apple was the biggest ad spender on Twitter in Q1 2022. It spent an average of $4 million per week to run ads on Twitter between January to March this year — this added up to about 4% of Twitter’s revenue. However, Reuters reports that Apple reduced its weekly ad budget on Twitter to $131,600 a few weeks after Elon Musk bought the social media company. We also haven’t heard from Apple’s CEO, Tim Cook, about the agenda of his meeting with Elon Musk. 

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