Cottonwood Technology Fund Investing in Tech and Beyond

Author

Reads 2.6K

A diverse group of women in technology poses together in an office lobby, exuding confidence and teamwork.
Credit: pexels.com, A diverse group of women in technology poses together in an office lobby, exuding confidence and teamwork.

Cottonwood Technology Fund is a venture capital firm that's making waves in the tech industry. They're focused on investing in startups and early-stage companies that are pushing the boundaries of innovation.

Their investment strategy is centered around identifying talented entrepreneurs and providing them with the resources they need to succeed. With a keen eye for spotting emerging trends, Cottonwood Technology Fund is always on the lookout for the next big thing.

The fund's team has a strong track record of successful investments, with a focus on companies that are solving real-world problems. From software to hardware, they're backing the most promising startups in the tech space.

History

Cottonwood Technology Fund was founded by David Blivin in 2010 in Santa Fe, New Mexico. He had a vision to create a fund that would support innovative technologies.

Cottonwood expanded its operations to Europe in 2014, establishing its European headquarters on the innovation campus of the University of Twente in Enschede, the Netherlands. This move marked a significant milestone for the fund.

Credit: youtube.com, Faraday Video Blog: Alain le Loux about Cottonwood Technology Fund

Alain le Loux, a seasoned executive with experience leading multiple startups, was appointed to lead the European operations. He brought a wealth of knowledge and expertise to the role.

Here's a brief overview of Cottonwood's European expansion:

Cottonwood Technology Fund has since grown and developed, with a strong presence in both the US and Europe.

Investments

Cottonwood Technology Fund is a venture capital firm that specializes in seed stage and early stage investments in private companies. Their portfolio is diverse, with investments in photonics, electronics, advanced materials, nanotechnology, medical technology, advanced manufacturing, robotics, clean technology, and the renewable energy transition.

They have made 66 investments since their inception, with their latest investment being in Circular Genomics as part of their Series A on January 23, 2024. This investment was a significant one, totaling $8.3 million.

Cottonwood Technology Fund has a strong track record of investing in promising companies, with over 20 investments since 2010. Some of their notable portfolio companies include Skorpios Technologies, BayoTech, Sarcos Robotics, Infinitum Electric, SoundEnergy, OPNT, and Eurekite.

Credit: youtube.com, #1 Ray Quintana – Cottonwood Technology Fund

Here's a breakdown of their investments over the years:

News and Updates

Cottonwood Technology Fund has been actively investing in innovative startups, with a focus on technologies that have the potential to disrupt traditional industries.

One notable investment is in a company that has developed a new type of sustainable packaging material, which is being used by several major food companies.

The fund's team has a strong track record of identifying and backing successful startups, with several exits in the past few years.

Their investment strategy is centered around supporting companies that are addressing pressing global challenges, such as climate change and healthcare disparities.

Cottonwood Technology Fund has a diverse portfolio of investments across various sectors, including clean energy, healthcare, and education technology.

Their team is comprised of experienced investors and entrepreneurs who bring a unique combination of industry expertise and investment acumen to the table.

Portfolio

Cottonwood Technology Fund's portfolio is a diverse mix of innovative companies across various sectors. They have invested in over 20 companies since 2010, including Skorpios Technologies and Sarcos Robotics.

Credit: youtube.com, COSAMS16 | Ray Quintana | Cottonwood Technology Fund

Their investments span across photonics, electronics, advanced materials, nanotechnology, medical technology, advanced manufacturing, robotics, clean technology, and renewable energy transition. This suggests that Cottonwood Technology Fund is committed to supporting companies that are pushing the boundaries of technology.

Cottonwood Technology Fund has made 66 investments, with their latest investment being in Circular Genomics as part of their Series A on January 23, 2024. They have also invested in companies like Exagen Inc., which exited in an initial public offering (Nasdaq: XGN) in 2019.

Here's a breakdown of the sectors Cottonwood Technology Fund invests in:

Some notable investments include Green Theme Technologies, which received a Series C investment of $6M, and Q*Bird, which received a seed investment of $2.71M.

Investment Details

Cottonwood Technology Fund invests in a variety of sectors, with a notable presence in High Tech, making up 14 of their investments.

Their portfolio is quite diverse, with a significant number of investments in sectors like High Tech and Life Sciences.

Here's a breakdown of the sectors they've invested in:

Investment Strategy

Credit: youtube.com, How I Pick My Stocks: Investing For Beginners

Cottonwood Technology Fund focuses on seed stage and early stage investments in private companies.

Their portfolio is diverse, covering photonics, electronics, advanced materials, nanotechnology, medical technology, advanced manufacturing, robotics, clean technology, and the renewable energy transition.

Since 2010, Cottonwood has invested in over 20 companies, including Skorpios Technologies, BayoTech, Sarcos Robotics, and Infinitum Electric.

Their investment strategy is clearly paying off, as evidenced by Exagen Inc.'s successful initial public offering (Nasdaq: XGN) in 2019.

IPOs and Public Companies

Let's take a closer look at the IPOs and public companies in Cottonwood Technology Fund's portfolio. They've invested in some notable companies, including Exagen and Lumentum.

Exagen, a biopharmaceutical company, went public on September 20, 2019. The company was first invested in on September 11, 2012, with a $5.31 million Series C round of investment.

Lumentum, a technology company, went public on July 23, 2015. Unfortunately, the exact details of their first investment are not provided in the available data.

Here's a quick summary of the IPOs and public companies in Cottonwood Technology Fund's portfolio:

Co-Investment

Credit: youtube.com, Ray Quintana – Cottonwood Technology Fund

Cottonwood Technology Fund has a strong network of co-investors, with 91 investors having co-invested in their portfolio companies over the past 13 years.

Some of these co-investors have a history of investing in companies before Cottonwood Technology Fund even gets involved. For example, The Yield Lab has invested in at least one company before Cottonwood Technology Fund, and Anzu Partners has done the same.

Sun Mountain Capital is a notable co-investor, having partnered with Cottonwood Technology Fund in 5 different companies.

A total of 43 investors have invested in Cottonwood Technology Fund's portfolio after their initial investments, with top co-investors including Sun Mountain Capital, EIC Fund, and Rotor Capital.

Here are some of the top co-investors of Cottonwood Technology Fund:

  • Sun Mountain Capital (5 companies)
  • EIC Fund (3 companies)
  • Rotor Capital (1 company)

Overview

Cottonwood Technology Fund focuses on investing in hard science and high-tech technology companies.

They usually invest in 2 to 3 new disruptive pre-seed, seed, and early-stage companies per year, but lead 8 to 10 investments per year.

Credit: youtube.com, (Audio Only) Start Up the Science Podcast - S2 Episode 31- Marie Weijler - Cottonwood Tech Fund

The fund has a regional focus limited to the Southwest US and Northern Europe.

They show a strong interest in patent-based companies, particularly in Photonics / Optics, Micro- & Nanoelectronics, Advanced Materials & Nanotechnology, Medical Technology, Cleantech / Energy Transition, and Advanced Manufacturing & Robotics.

Cottonwood Technology Fund does not invest in software, platforms, artificial intelligence, apps, life sciences, biotech, and consumer products.

To be considered for funding, a technology must have a patent.

The fund encourages applicants to ask themselves if their technology is worth investing in, by considering questions such as whether the technology is significant or disruptive, and if there's a sizable addressable market.

Carole Veum

Junior Writer

Carole Veum is a seasoned writer with a keen eye for detail and a passion for financial journalism. Her work has appeared in several notable publications, covering a range of topics including banking and mergers and acquisitions. Veum's articles on the Banks of Kenya provide a comprehensive understanding of the local financial landscape, while her pieces on 2013 Mergers and Acquisitions offer insightful analysis of significant corporate transactions.

Love What You Read? Stay Updated!

Join our community for insights, tips, and more.