Tacora Capital, a Texas firm that specializes in venture debt, has raised $268.7 million for its second fund, according to a new SEC filing.
Tacora’s inaugural 2022 fund raised about $350 million, including $250 million from Peter Thiel — the billionaire and prominent Republican investor — in what was considered an “extraordinarily large investment” for Thiel, Bloomberg reported at the time.
It’s not clear if Thiel is involved in Tacora’s latest fund: all the filing reveals is that he has 28 (unnamed) investors. Tacora founder and CEO Keri Findley declined to comment on whether Thiel invested. Representatives for Thiel did not immediately respond to TechCrunch.
Founded in 2021, Tacora is based in Austin. Findley was first introduced to Thiel through his VC firm, Thiel Capital, when she worked as a partner at hedge fund Third Point, according to Bloomberg.
Findley told TechCrunch that the new fund reflects the successful deployment of the inaugural fund and the demand for “flexible, unleveraged” funding solutions.
Venture debt firms lend money to startups and other businesses, rather than buying their own equity like traditional VCs. This type of financing can be attractive to founders who need cash but don’t want to dilute their ownership. Tacora specializes in lending to businesses with capital-intensive needs, such as fintech and hardware companies, Findley told TechCrunch. (Findley declined to provide examples of specific companies he has supported so far.)
The risk with venture debt, of course, is that startups—which often burn through cash—are unable to repay their loans. According to a press release for its first fund, Tacora says it backs loans only against “specific and strong assets owned by well-positioned companies.”
