Active Capital launched its third fund, totaling $28 million, targeting enterprise AI and cloud infrastructure startups in the pre-seed stage. This brings the firm's total assets under management to over $100 million across three funds and multiple Special Purpose Vehicles. Pat Matthews founded the firm and believes in the significance of early-stage funding from experienced founders. The initial fund returned nearly 70% of its capital, with a total value nearing four times the invested amount, supporting over 50 startups nationwide. Active Capital usually leads pre-seed rounds, investing between $500,000 and $1 million in deals that range from $500,000 to $3 million. The firm's limited partners mainly include individuals from entrepreneurial backgrounds and family offices, favoring startups led by technical founders. U.S. pre-seed funding this year reached $556 million across over 600 deals, a decrease from $733 million in more than 1,200 deals last year. Matthews emphasized the importance of early-stage funding for company foundations and recognized opportunities in pre-seed investments beyond traditional tech hubs. He noted the increasing relevance of AI and observed a shift among startups towards profitability alongside growth, reflecting the current economic conditions. Active Capital secured its latest fund by maintaining strong investor relationships and focusing on performance, aiming to support founders regardless of location.
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