Jul. 19–Seattle-based venture capitalist Jon Staenberg has joined forces with a Los Angeles-based venture-capital company to raise a new fund and connect Seattle to the broader West Coast.
Staenberg and Rustic Canyon Group have raised about $130 million for a new investment pool to fund storage, wireless and e-commerce companies, Staenberg said yesterday. Each year, the fund will invest in five to seven companies, about a third in the Seattle area.
Staenberg, who had raised more than $100 million in venture capital on his own, will head Rustic’s Seattle office and manage the companies in his two prior funds, which are fully invested.
Rustic also has an office in the San Francisco area. The new partnership extends Staenberg’s connection between Silicon Valley and Seattle — a mission he maintained at Staenberg Venture Partners.
The fund could grow to more than $175 million, Staenberg said. The fund also has received a Small Business Investment Company license (SBIC) from the Small Business Administration, which provides $2 in government funding for every $1 raised from other sources. So if the investors raise $60 million, the fund would grow to $180 million with SBIC aid.
The ability to raise money bodes well for the local economy, Staenberg said.
“The fact that we are raising money successfully is amazing,” he said.
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