Tacora Capital closes $268.7M second fund for venture debt investments

Founded in 2021, U.S.-based Tacora Capital has closed its second fund at $268.7 million. Operating as a venture debt firm, Tacora primarily provides cash loans to startups, particularly in the fintech sector, that have already secured investments from venture capital (VC) firms.

Unlike traditional VCs, venture debt firms do not acquire equity stakes in exchange for funding. Instead, they offer cash loans to both new and existing startups, making this model especially attractive to founders who prefer to retain control over their equity.

Tacora Capital completed its first fund in 2022, raising $350 million. That fund drew attention for a significant $250 million contribution from Republican billionaire and investor Peter Thiel. However, according to SEC filings, the second fund includes 28 investors, but their identities remain undisclosed. It is unclear whether Thiel has contributed to this fund.

Based in Austin, Tacora Capital focuses on providing loans to startups developing solutions in fintech, insurance, payment infrastructure, real estate, supply chain, and logistics. The company targets early- and mid-stage startups.

Tacora’s founder and CEO, Keri Findley, remarked during the closing of the first fund, “Our portfolio companies view our capital as a strong alternative to traditional venture capital, which can often be highly dilutive and insufficient for capital-intensive businesses we aim to partner with.”

Findley further explained Tacora’s investment strategy: “We aim to separate asset performance risk from traditional venture capital risk and plan to invest in specific, high-quality assets held by well-positioned companies.”

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