New fund launches to finance startups

Firms vie for dollars at Invest Southwest as new fund is announce by Grayhawk

Companies appearing at the annual Invest  Southwest Capital Conference this week in hopes of landing seed money have a  little more reason to be optimistic this year.

While Arizona has largely been ignored when it comes to venture capital,  Grayhawk Capital of Arizona on Friday announced a $28.5 million venture-capital  fund that can be used to help finance growing companies and produce more  jobs.

“This is really the first venture fund that’s been raised in Arizona in about  five years,” said Brian Smith, a Grayhawk managing member. “Unfortunately,  Arizona doesn’t have more venture capital, but the good news is we’ll have one  good-sized fund off the ground here.”

The $28.5million fund means Grayhawk is almost a third of the way into its goal  to build a $100 million fund, Smith said. He also said the company has investors  standing by willing to commit another $20million if their investments  can be matched.

Read more of the article by Betty Beard at the Arizona Republic here

Posted in AZBio News.