Tacora Capital, a Texas company specializing in venture debt, has raised $268.7 million for its second fund, according to a new SEC filing.
Tacora's first fund in 2022 raised about $350 million, including $250 million from prominent Republican billionaire and investor Peter Thiel. , was considered an “unusually large investment” for Thiel, Bloomberg reported at the time.
It's unclear whether Mr. Thiel is involved in Tacora's latest fund. The only disclosure in the filing is that there are 28 (anonymous) investors. Tacora founder and CEO Keri Findley declined to comment on whether Thiel invested. A representative for Thiel did not immediately respond to TechCrunch.
Founded in 2021, Tacora is based in Austin. Findley was first introduced to Thiel through Thiel's venture capital firm, Thiel Capital, while working as a partner at the hedge fund Third Point, according to Bloomberg.
Findley told TechCrunch that the new fund reflects the success of the first fund's rollout and the demand for “flexible, unleveraged” financing solutions.
Venture debt firms lend cash to startups and other companies, rather than buying stock like traditional VCs. This type of financing is attractive to founders who need capital but don't want to dilute ownership. Tacora specializes in lending to companies with capital-intensive needs, such as fintech and hardware companies, Findley told TechCrunch. (Findlay declined to cite specific examples of companies he has supported.)
Of course, the risk with venture debt is that startups, which often run out of cash, are unable to repay their loans. Tacora said it would only support financing for “certain strong assets owned by well-positioned companies,” according to the first fund's press release.