Syracuse, New York-based Armory Square Ventures (ASV) has raised its second fund, bringing its total capital under management to $50 million. As one of the only venture capital firms in the upstate region of New York, ASV plans to continue its focus on local areas that have historically been overlooked by investors.
The new $31 million fund will focus its investments in early stage tech companies in agtech, automotive tech, health information tech, manufacturing, and other potentially high-growth sectors in the cities of Ithaca, Syracuse, Rochester, and Buffalo, New York.
In a recent statement the firm said, “ASV will continue to build upon a unique investment strategy that focuses on allocating venture capital in industrial cities and regions that resemble Upstate New York, which have traditionally lagged behind in VC funding.”
Launched in 2014, ASV has garnered backing from its existing and new investors, representing some of the most notable and leading universities, foundations, and institutions in the world. With this newly raised capital, ASV plans to make investments of up to $2 million across 15 to 20 early stage companies.
“We would like to thank our investors and the Upstate New York startup community for their support as we further our commitment to revitalize emerging regions through financial investment, partnerships and other active involvement with local startup communities,” said Somak Chattopadhyay, founder and managing partner of ASV.
Through the firm’s deep relationships and its rare on-the-ground presence in the area, ASV has been able to collaborate with universities and incubators in the region, securing significant follow-on investments for its portfolio companies.
“Over the years, ASV has prioritized investments in geographies where a highly-skilled labor pool, low cost of living and strong educational infrastructure provide competitive advantages for startups,” said Eric Allyn, a venture advisor and investor in ASV and formerly the 4th generation owner of Welch Allyn, a medical device manufacturer based in the Syracuse area. “These efforts serve as a model for companies both in Upstate New York and across emerging cities in the Northeast.”
Location, Location, Location
In recent years, geographic location has played a larger role in the focus and deployment of venture capital.
In very similar fashion to ASV, founding partner of Huron River Ventures, Tim Streit branched off in early 2017 to found the new venture capital fund, Grand Ventures I LP
Based in Grand Rapids, Michigan, and concentrating its investment power to the U.S. Midwest region, the fund was launched with a target of a maximum cap of $50 million to invest in very early stage Midwest companies that are either on the verge of entering, or have entered the marketplace in the fields of agriculture, manufacturing, and transportation.
“The Midwest holds incredible potential for startups and early-stage venture capitalists,” Streit told MiBiz in 2017. “This is a great time to be an entrepreneur, and Grand Ventures wants to help companies realize their full potential. We are trying to focus on entrepreneurs that are fundamentally trying to change the world, and in doing so will create a great business and they will create great outcomes for their communities and their investors.”
Meanwhile, Huron River Ventures continues to also center its investments in the U.S. Midwest region, and is being run by founding partner Ryan Waddington.
Prominent in the Huron River portfolio is Ann Arbor-based FarmLogs – a data management platform provider that announced its $22 million Series C led by Naspers Ventures and including Huron River Ventures, Drive Capital, Hyde Park Venture Partners, SV Angel, and Y Combinator President Sam Altman.
Founded in 2011 and a graduate of the Y Combinator startup accelerator, FarmLogs employs machine learning and data science to help farmers gather real-time metrics that can be used to increase yields, reduce waste, and increase revenue.
Imminent Investments
From its dual offices in both Syracuse and New York, New York, ASV has made eight investments to date, and has had a significant exit in the ag space – Agronomic Technology Corp., a nitrogen data platform for farmers and agronomists that offers actionable crop management recommendations, which was sold to Yara International in November 2017.
Looking forward, ASV is planning to announce its first commitments through its second fund within one to two months, however, in addition to making investments, ASV also will play a role helping its companies recruit co-investors, senior team members, and customers.
“We’re open for business and we’re excited about investing in this region,” said Chattopadhyay.
-Lynda Kiernan