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Cofounders Capital is a venture capital firm founded in 2015 and headquartered in Durham, North Carolina. The firm focuses on early-stage investments, particularly in B2B software startups. Cofounders Capital has established itself as a key player in the Southeastern United States, supporting entrepreneurs with both capital and mentorship. The firm has raised multiple funds, with its latest fund, Fund III, closing at $50 million in March 2023.
Since its inception, Cofounders Capital has deployed over $40 million across 32 portfolio companies, demonstrating a strong commitment to fostering innovation in the technology sector. The firm primarily targets startups in North Carolina, South Carolina, Georgia, and Florida, aiming to enhance the regional tech landscape. Cofounders Capital's active involvement in its portfolio companies ensures that founders receive the necessary support to navigate the challenges of scaling their businesses.
Cofounders Capital invests in early-stage B2B software companies, with a strong emphasis on the Southeastern United States. The firm focuses on pre-seed, seed, and seed-plus stages, typically writing checks ranging from $300,000 to $1 million. Their investment strategy prioritizes sectors such as SaaS and AI, particularly in applications that enhance business operations and customer engagement.
The firm seeks to partner with entrepreneurs who demonstrate a strong vision and the ability to execute their ideas. Cofounders Capital emphasizes operational involvement post-investment, providing mentorship and resources to help startups grow. Their latest fund explicitly targets AI applications within B2B software, reflecting a commitment to supporting innovative solutions that leverage artificial intelligence.
Cofounders Capital has built a diverse portfolio of 32 companies, primarily in the B2B software sector. Notable portfolio companies include:
David Gardner: Founding Partner. David has extensive experience in venture capital and entrepreneurship, having co-founded multiple startups prior to Cofounders Capital.
Tim McLoughlin: Managing Partner. Tim is a former entrepreneur with a strong media presence, frequently sharing insights on venture capital and startup growth.
Tobi Walter: Partner. Tobi brings a wealth of experience in technology investments and has a background in operational roles within startups.
Daniel Coley: Associate. Daniel supports the investment team with research and due diligence on potential portfolio companies.
Leah Townsend: Executive in Residence. Leah provides strategic guidance to portfolio companies, leveraging her extensive industry experience.
Scott Albert: Venture Partner. Scott has a background in venture capital and entrepreneurship, contributing to the firm's investment strategy and portfolio management.
Cofounders Capital prefers pitches to be submitted through their website. Founders should include a clear overview of their business model, market opportunity, and team background in their pitch deck. The firm typically responds within a few weeks of receiving a pitch.
Warm introductions are encouraged but not mandatory. Cofounders Capital is open to evaluating pitches from founders who demonstrate a strong understanding of their target market and a compelling vision for their startup.
In March 2023, Cofounders Capital closed its third fund at $50 million, raising over $46 million to support seed-stage B2B software companies. This fund explicitly targets AI applications within the B2B software sector.
In 2022, Cofounders Capital was recognized as one of the most active investors in North Carolina, reflecting its commitment to supporting early-stage startups in the region. The firm has consistently invested in notable companies, including a recent $1 million investment in Left Main REI, a CRM designed for real estate investors based in Atlanta.
What are Cofounders Capital's investment criteria?
Cofounders Capital focuses on early-stage B2B software companies, particularly in the Southeastern United States. They prefer startups that are in the pre-seed, seed, or seed-plus stages and typically invest between $300,000 and $1 million.
How can I pitch to Cofounders Capital?
Interested founders can submit their pitch through the Cofounders Capital website. The firm encourages pitches from early-stage B2B software ventures located in the Southeastern U.S.
What makes Cofounders Capital different from other investors?
Cofounders Capital emphasizes operational support and mentorship alongside capital investment. They take an active role in the growth of their portfolio companies, providing guidance and resources to help entrepreneurs succeed.
What is the geographic focus of Cofounders Capital?
The firm primarily invests in startups located in the Southeastern United States, including North Carolina, South Carolina, Georgia, and Florida.
What is the fund size and how many companies do they typically invest in?
Cofounders Capital's current fund size is $50 million, and they aim to invest in 15 to 20 companies per fund cycle.
What sectors does Cofounders Capital focus on?
The firm focuses on B2B software companies, with a particular interest in SaaS and AI applications. They are committed to supporting innovative solutions that enhance business operations.
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