Several tech news sources have been reporting this morning that Silverton Partners has raised it’s fourth fund in the amount of $75M. This is the same amount as it’s previous fund, which seems to have provided a solid return with liquidity events for their investments in Convio (Filed for IPO), BlackLocus (Acquired by Home Depot), and several others. Silverton invests exclusively in Austin-based companies. Several factors have contributed to Silverton’s success.
Being geographically focused has given the investment firm depth in the local market. It allows them to get deeply involved in many facets of the Austin technology community. Founding partner Bill Wood was a founding partner at Austin Ventures in the 80’s and has deep relationships outside of Austin that benefit entrepreneurs here.
In speaking with one entrepreneur who chose Silverton as a funding partner against many others, he told me “I know that if I need advice, I can just pickup the phone and connect with anyone at the firm. They are highly available to me, and that was an important part of the decision.” This sentiment is echoed if you read any 3rd party “VC Review” websites or blogs. In speaking with another entrepreneur who did not get funded by Silverton, he told me that while meeting with the firm he received excellent advice, and also was told right away that his new company was not a fit for Silverton. This saved him time in his pursuit of capital by allowing him to focus on VC’s that were a fit for his business, while still deriving lots of value from the time he spent with them.
In short, they’re good guys. And that seems to be a winning strategy.