After 'Very Difficult' Fundraising, March Capital Oversubscribes Fund III to Double Down on Enterprise

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

After 'Very Difficult' Fundraising, March Capital Oversubscribes Fund III to Double Down on Enterprise

The new year is continuing where 2020 left off, with more L.A. venture firms raising big funds.

Santa Monica-based March Capital announced Thursday it has closed its third fund, a $450 million vehicle to double down on the firm's focus on enterprise software companies in artificial intelligence, industrial technology, cybersecurity, financial technology and cloud infrastructure.


After being spread too thin in Fund I, the firm has been using a higher conviction model to focus on bigger investments in fewer startups.

"We tried to do too much in Fund I," said founder and Managing Partner Jamie Montgomery, who started the firm with Jim Armstrong, Gregory Milken and Sumant Mandal in 2014. "We simplified our strategy in Fund II. We raised the quality bar and only partner with entrepreneurs that are unafraid to tackle large markets and we doubled-down with conviction in our portfolio companies that were breaking out."

Already four of the firm's investments in Fund III are follow-on capital to existing portfolio companies, including CarTrade, an online auto classifieds platform, Uniphore, an AI customer service solution, and ASAPP, a conversational AI technology company.

Though the fund ended up being oversubscribed, raising nearly half a billion dollars during the pandemic was no easy task.

"It was very difficult," Montgomery said. "Many investors want to meet in person and many investors are concerned about valuations and about the inherent volatility in the economy."

Montgomery says the firm benefited from its previous track record, especially highly lucrative early bets it made on the cybersecurity company CrowdStrike.

As dot.LA reported last month, March Capital invested $26.5 million in the company's Series D round in 2017 at a post money valuation of $1.02 billion and another $39.7 million in the Series E financing in 2018 at a $3.35 billion post money valuation. When CrowdStrike went public in 2019 at a $6.69 billion valuation, March Capital not only held onto most of its shares, but added to its stake. After the run up in CrowdStrike's stock price, March Capital has reaped a return on paper of over $1 billion.

"We are fortunate that March Capital I is a top-quartile performing fund and March Capital II is a top-decile performing fund," Montgomery said.

But even with those hits, Montgomery still had to convince investors to come aboard a third time.

"We had done a global tour in late 2019 and early 2020 and hosted hundreds of investors at events in New York, London, Zurich, Melbourne and Los Angeles before COVID hit," Montgomery said. We then launched a virtual series in April tailored for our investors. We suspended fundraising in March and restarted in July. We had literally hundreds of virtual meetings during the last six months of 2020."

LPs in Fund III include local and global family offices as well as several sovereign wealth funds.

"We have 100% retention of investors from Fund II to Fund III and we added a number of new relationships in Europe, Australia and other markets," Montgomery said. "It is important to keep your investors happy but also refresh them over time."

Two-time entrepreneur Wes Nichols and India-based Rajan Mehra have come aboard as new partners for Fund III. They join existing partner Jed Leidheiser and co-managing partner Milken, who leads the March Gaming investment fund.

March Capital also announced the creation of the March Capital Foundation, which will allocate 1% of the firm's profit to address homelessness, hunger and community health.

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🌴🧑‍💻 Your Guide to LA Tech Week 2024

🔦 Spotlight

Happy Friday Los Angeles,

As many of you know, LA Tech Week is right around the corner, kicking off next Monday October 14th bringing together founders, creatives, investors, and engineers for a week of immersive events, panels, and socials across the city. From blockchain and AI to biotech and design, LA Tech Week is a chance to dive into the ideas shaping today’s technology landscape.


What to Look Forward To

Insights from Visionary Leaders: Hear firsthand from industry trailblazers as they share stories, challenges, and key lessons from their experiences. Expect fresh perspectives on AI, venture capital, biotech, and the ethical questions around emerging technologies.

Interactive Panels: This week isn’t about watching from the sidelines; it’s about engaging directly with the tech community. Participate in hands-on panels discussing everything from startup scaling to ethical AI, with honest insights from those actively shaping these fields.

Networking Mixers & Social Events: Meet and connect with founders, VCs, developers, designers, and fellow techies across LA. Rooftop mixers, lunch meetups, and creative gatherings offer the perfect chance to spark ideas and collaborate.

Plan your week with the daily lineup, organized by location for easy navigation:

For updates or more event information, visit the official Tech Week calendar.

Enjoy LA Tech Week 2024!!


🤝 Venture Deals

LA Companies

  • Clout Kitchen, a Los Angeles and Manila based startup, has raised $4.45M in seed funding, co-led by a16z SPEEDRUN and Peak XV’s Surge, to develop AI-powered digital twins, which enables gaming creators to produce realistic virtual avatars for content and fan engagement. - learn more
  • MeWe, a privacy-focused social media platform, has raised an initial $6M in Series B funding led by McCourt Global to support Web3 integration and expand its decentralized network for 20 millions users. - learn more

    LA Venture Funds
    • EGB Capital participated in a $10M Series A funding round for MiLaboratories, which develops software that enables biologists to independently analyze complex genomic data, accelerating research and discovery in fields like drug development. - learn more
    • Crosscut Ventures participated in the $13.75M seed round for Airloom Energy, a company focused on developing airborne wind energy technology to harness high-altitude winds, with plans to accelerate a pilot project in Wyoming. - learn more
    • Overture VC participated in a $5.5M Seed funding round for Molg Inc., a company developing robotics and software for circular manufacturing, designed to disassemble electronics efficiently and recover valuable materials to reduce e-waste and support sustainable production. - learn more


      LA Exits

      • Options MD, a Los Angeles based telemedicine platform that provides care for people suffering from severe and treatment-resistant mental illness, is set to be acquired by Resilience Lab, an AI-driven provider focused on enhancing mental health care access. - learn more

      Download the dot.LA App

      LA Tech Week 2024: Saturday-Sunday Event Lineup
      tech-week

      Here’s what’s happening during the closing weekend (Oct 19 - Oct 20) of LA Tech Week 2024! Events are organized by location so you can easily catch the sessions that interest you most.

      SATURDAY EVENTS

      BEVERLY HILLS

      12:00 PM

      • BIG Showcase (Invite Only):

      BIG Showcase (Invite Only)

      2:00 PM

      Light Dao

      Struck Capital, Seahorse Express

      EAGLE ROCK

      12:00 PM

      Sunrise Integration, Shopify

      EL SEGUNDO

      9:00 PM

      Administratum, Valar Atomics

      HOLLYWOOD

      10:00 AM

      Passes

      MALIBU

      6:00 PM

      • Malibu Beachfront Investors Networking & Wine Tasting:See Details

      Gaya Ventures

      MARINA DEL RAY

      6:00 PM

      • Awaken Your Spirit: A Journey of Transformation (Invite Only)

      Sagos Distro, Alma Wellness

      SANTA MONICA

      7:00 AM

      Founders Running Club

      8:30 AM

      Techstars

      9:00 AM

      Magic Mind

      StartupStarter, Inc., City of Santa Monica

      10:00 AM

      Gen She

      AI LA

      Crea, Barry's, Unsubscribe

      10:30 AM

      Plantologist

      11:30 AM

      • Pickleball Palooza (Invite Only)

      YouTube

      1:00 PM

      • Realfren Games: From strangers to an inner Realfren within 52 weekends: See Details

      Office for Humanity and Circuit Works

      • Talking blockchain technology with special guests: See Details

      LadyDayDao

      5:00 PM

      KARD, What's Plots

      THE VALLEY

      7:00 AM

      Camino5

      VENICE

      9:00 AM

      Westside Yogis

      11:00 AM

      Open App

      1:00 PM

      Ripe and Teddy's Hot House

      4:00 PM

      • Fashion Forward: How AI is Redefining the Fashion Industry: See Details

      VIAVIA, BNTO.RENT, ALMA.AI

      VIRTUAL

      11:00 AM

      BLCK UNICRN

      WEST HOLLYWOOD

      7:00 PM

      Next Sequence

      SUNDAY EVENTS

      INGLEWOOD

      12:00 PM

      Entrepreneur Ventures, VCPE GROUPS

      PLAYA DEL RAY

      2:00 PM

      AI LA, DELL, NVIDIA

      SANTA MONICA

      10:00 AM

      • Women Founders, Cold Brew & Beach View, Rooftop: See Details

      Clutch Talent

      11:00 AM

      11DollarSunglasses.com, Less Litter Foundation

      12:00 PM

      Data in LA, Amplitude

      12:30 AM

      New Moon, Warner UK Innovations

      TOPANGA CANYON

      3:00 PM

      Dreamore

      VENICE

      8:00 AM

      • Surf session with founders, investors, creators: See Details

      Surfed Club, Bow Shock

      12:00 PM

      • Podcast Panel and Brunch: LA Tech Community Builders: See Details

      WeAreLATech.com, Blankspaces.com

      VIRTUAL

      2:00 PM

      BLCK UNICRN


      For updates or more event information, visit the official Tech Week calendar.

      Enjoy LA Tech Week 2024!


      Download the dot.LA App

      LA Tech Week 2024: Friday’s Event Lineup
      tech-week

      Check out Friday, October 18th's schedule for LA Tech Week 2024! Events are sorted by location so you can easily find what matches your goals for the day.

      BEVERLY HILLS

      8:00 AM

      Scrappy

      BRENTWOOD

      7:30 AM

      Seaside Ventures

      CULVER CITY

      9:00 AM

      Intersections LA

      1:30 PM

      • Showcasing Bioscience Innovation in LA County (Invite Only)

      BioscienceLA, County o LA, Larta Institute, LAEDC

      5:00 PM

      Grid110

      6:00 PM

      ACT House, Sip & Sonder

      EL SEGUNDO

      7:00 PM

      Dirac, Inc.

      INGLEWOOD

      10:00 AM

      Zoo Corporation, Embedded Ventures

      12:00 PM

      • Tech & The Built Environment Series: LA28 Roundtable & SoFi Stadium Tour: See Details Here

      Blended Impact

      MARINA DEL REY

      9:00 AM

      USC ISI

      PACIFIC PALISADES

      4:00 PM

      Silicon Valley Bank, Emmeline Ventures

      PLAYA DEL REY

      8:00 AM

      AI LA

      5:30 PM

      AI LA

      PLAYA VISTA

      12:00 PM

      • Women In Gaming Lunch at Google (Invite Only)

      Google

      4:00 PM

      Verizon, Infinity Festival

      SANTA MONICA

      11:00 AM

      SVRN Ventures

      Headline, Slow Ventures, Karat

      2:00 PM

      Glyf

      Botanical, Panoptic

      The American South Asian Network (ASAN)

      4:00 PM

      • Pizza, Wine, & Connectivity: Celebrating the Nomadic App Revolution:See Details Here

      Synadia

      The American South Asian Network (ASAN)

      Dory Consulting

      • Women in Tech: Beachfront Rooftop at Sunset - Wine-up & Unwind: See Details Here

      Clutch Talent

      Cohere Commerce

      5:00 PM

      Clutch Talent

      Pirros

      6:00 PM

      • Unlocking Capital with Angels & Advisors | No Pressure Networking + Panel:See Details Here

      No Pressure Networking

      Tech Pitch Roast Comedy LLC

      6:15 PM

      • Navigating Intersections: Empowering Leaders in Challenging Times: See Details Here

      Intersectional Ventures

      7:00 PM

      Mantis VC, Lightspeed Venture Partners

      Medusa Ai, Marco Di Luca Event Design

      SOUTH LA

      9:00 AM

      USC Lloyd Greif Center for Entrepreneurial Studies, Cap Table Coalition, PledgeLA, Sisters with Ventures

      UCLA

      1:30 PM

      CrownData.AI

      2:00 PM

      Taisu Ventures, Quotient Ventures

      VENICE

      7:30 AM

      Run Tech Club

      9:00 AM

      Google

      12:00 PM

      Ripe and Teddy's Hot House

      5:30 PM

      Spire Circles

      7:00 PM

      Moss Venice, Yuzulabs, JPMorgan Chase

      8:00 PM

      Truffle

      VIRTUAL

      2:00 PM

      BLCK UNICRN

      WEST HOLLYWOOD

      7:30 PM

      Legendary Ventures, Day Dream Ventures

      WESTSIDE

      9:30 AM

      A16Z GAMES

      7:00 PM

      • Female Funders & Founders (Invite Only)

      L'ATTITUDE Ventures

      WESTWOOD

      9:00 AM

      Fedtech, National Security Innovation Network (NSIN)


      For updates or more event information, visit the official Tech Week calendar.

      Enjoy LA Tech Week 2024!

      Download the dot.LA App

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