ATX Seed Ventures Raises Second Investment Fund of $32 Million

Austin—ATX Seed Ventures has closed a $32 million investment fund, the firm’s second. ATX invests in early-stage software, Internet of Things, e-commerce, and mobile application startups.

Founded in 2014, ATX Seed Ventures says it now has $60 million in assets under management and has invested in 26 companies, including startups like Everfest, Pensa Systems, and Ridescout. The Austin-based firm is already making plans for a third fund, for which it hopes to raise $100 million, according to a spokeswoman.

ATX Seed Ventures aims to invest in businesses in Texas and the rest of the south-central United States. In addition to investing in new early-stage startups with its new fund, ATX plans to make follow-on investments in its current portfolio companies. The firm is run by managing partner Chris Shonk, partner Brad Bentz, and partner and chief operating officer Danielle Allen.

Four businesses that ATX Seed Ventures previously invested in have been acquired. Daimler AG subsidiary Car2Go bought RideScout in 2014 for an undisclosed price. Microsoft (NASDAQ: MSFT) bought FantasySalesTeam a year later, and also didn’t say what it paid. Q2 Holdings (NYSE: QTWO) purchased mobile app startup Unbill. Finally, PledgeMusic acquired Set.fm.

David Holley is Xconomy's national correspondent based in Austin, TX. You can reach him at dholley@xconomy.com Follow @xconholley

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