Startups Anonymous Est. 2013 · Read-only archive
Questions

Split Rock Ventures only VC that can not find deals to invest in?

http://finance.fortune.cnn.com/2014/04/08/vc-firm-split-rock-moves-away-from-healthcare-deals/

Note: this article must be edited as they have taken out a key piece of information, this is a 2009 fund. I’m quoting the Term Sheet email dated 4/8/2014, I’ve bolded the text.

Split Rock has always been a generalist shop, with its healthcare practice focusing more on medical devices than on pharma or biotech. But partner Michael Gorman says that the medical device space has become more challenging over time, whereas opportunities have become more attractive in IT. Split Rock continues to invest out of a 2009-vintage $300 million fund (around 25% uncommitted), and expects to invest almost all of it into IT – although it has reserved follow-ons for existing healthcare portfolio companies, and is open to making a couple select healthcare deals. If and when Split Rock raises its next fund, however, all of it would be dedicated to IT.

While firms like Kleiner Perkins and Andreesen Horowitz raise more funds, apparently Split Rock still has money left to invest from a 2009 fund? 2-0-0-9?!? Are they a VC firm? Or do they just like to go ‘be a VC’ at community events?!?

This illustrates why the Minnesota startup scene is a joke.

6 answers from the community

AAnonymous· Apr 17, 2014

Minnesota must not be very hot for healthcare.

AAnonymous· Apr 18, 2014

Actually, in Medtech with Medtronic, St Jude Medical, and Boston Scientific, it is.

AAnonymous· Apr 17, 2014

Sigh, ejumacate yo'self:

VC funds are typically 7-10 year cycles. That means a fund raised in 2009 <em>IS</em> expected to be spread over investment activity from 2009 thru 2016 or until 2019.

No opinion on their choice of focus, however medical device is very different from medical technology (eg software, processes, etc), which is what most current healthcare related funds target.

AAnonymous· Apr 18, 2014

I'm blinded by your obvious ejumacation...

So leading VCs like Kleiner are actually investing (raising new funds after two years) http://finance.fortune.cnn.com/2014/04/14/exclusive-kleiner-perkins-raising-1-2-billion-for-new-funds/

The point being is Split Rock is typical of the lameness of Minneapolis-based investor community. They simply are not active, it's a facade. No wonder many founders are looking outside MN...

AAnonymous· Apr 19, 2014

As I said, funds are typically 7-10 year cycles. KPCB raising a new fund 2yrs later does not mean previous fund is closed out. VCs can raise new funds which have nothing to do with previous fund, eg if they want to target new sectors/company stages/activities not covered by other existing funds. And while many do, they don't have to wait until one ends before starting another (especially if they find LPs willing to put down $); they can have overlap.

AAnonymous· Apr 17, 2014

Sounds like a small VC, what do you expect?