Seattle venture capital firm Divergent Ventures might not be as well known as some of its counterparts. But the firm — led by Rob Shurtleff and Kevin Ober — certainly has met with success in recent months as two of its portfolio companies have been sold for healthy sums to SanDisk. (FlashSoft and Pliant).
Now, the partners — who focus on Internet infrastructure and “big data” startups — are looking to raise their game with a third fund that could top out at $25 million.
According to a SEC filing today, the firm has pulled in $6.9 million for the new fund. It is still in the process of raising additional money from existing and new investors, and Shurtleff said the process is moving forward really well.
“When you have happy investors, it makes fundraising easier,” said Shurtleff, a former board member at InterNap who worked at Microsoft from 1988 to 1998.
Divergent has already exceeded the total of its two previous funds, which totaled $8 million. And the additional cash flowing into a Seattle venture capital firm — albeit small — is good news for a startup community that’s been starving for cash.
Earlier this month, Madrona Venture Group announced a $300 million fund, the largest in the firm’s history. Also, we’ll be reporting on yet another fund later tonight that is emerging in Seattle with $20 million in cash committed. Stay tuned for more on that one.
Shurtleff, for one, agrees with the premise that Seattle remains underserved when it comes to venture capital.
“There has been plenty of commentary that there is more opportunity than capital, and I think there is plenty of truth to that,” he said.