Flint Capital has raised $160 million for its latest fund thanks to a unique strategy for finding investors. By tapping tech entrepreneurs who have first-hand knowledge of building promising startups, the Boston-based venture capital firm was able to significantly surpass the amount raised for its previous funds.
Rather than seeking out the usual limited partners like pension funds, Flint targeted founders who had achieved success with companies it had previously backed. This unconventional approach paid off, with the new Fund III coming in at $160 million – four times the size of Flint's debut fund nearly a decade ago.
The capital will support both early and late-stage investments, with a focus on sectors like information technology, cybersecurity, fintech and digital health. It's an approach that has clearly worked for Flint so far, as some of its biggest exits include identity verification platform Socure, which was last valued at $4.5 billion, as well as WalkMe and Flo – both now billion-dollar companies.
Raising funds in the current economic climate has proven difficult for many venture firms. However, Flint was able to secure backing even from founders it assisted during turbulent times, such as when supporting Israeli startups through periods of conflict. Seeing the resilience of these companies helped reinforce Flint's global investment strategy.
With 18 months spent fundraising, Flint still felt the effects of sluggish market conditions. Yet its differentiated limited partner model, which engages those intimately familiar with building successful startups, allowed the firm to achieve this sizable new fund. It's a testament to the power of an innovative approach focused on those deeply plugged into the tech ecosystem.
