Formative Ventures, an early-stage venture capital firm launched, has closed its first institutional fund at $77.5 million. Harvard Management Company, which manages the University’s endowment, serves as the anchor limited partner for the Formative Ventures Emerging Technology Fund.
In addition to Harvard, Formative Ventures received investment commitments from groups such as the University of Virginia Investment Management Company (UVIMCO), the University of Pittsburgh, and GKM Newport Generation Funds. In all, 13 institutional investors contributed to the Formative Ventures Emerging Technology Fund, with almost 90 percent of the commitments coming from foundations and endowments. The balance came from contributions from fund-of-funds, private investment groups and individuals.
“We pride ourselves in finding new venture groups that we feel can become ‘blue chip access-only’ funds, and are particularly excited about working with Formative Ventures,” said Erica Bushner, Managing Director of GKM Newport Generation Funds, a fund-of-funds investor in Los Angeles. “We believe that Formative Ventures has the drive, determination, and know-how to become a next-generation leader in early-stage venture capital.”
“We’re very pleased to have received support from such a strong group of investors,” said Clint Chao, co-founder and general partner of Formative Ventures. “We believe that we bring a unique set of skills which are valuable to both entrepreneurs and other established venture investors who we co-invest with. We’ve seen two of our earlier investments, InnoCOMM Wireless and Zyray Wireless, get acquired during a very difficult cycle for $140M and $96M respectively. This seemed to demonstrate to our new limited partner investors our ability to make the successful transition from operating executives to venture investors.”The new fund will invest in early-stage technology companies in areas such as communications, wireless and Internet solutions. Formative will look for companies that develop category-defining technologies and can win support from bellwether customers and industry influencers to become market leaders.