Tacora Capital Secures $268.7M for Second Venture Debt Fund

Tacora Capital, the Austin-based venture debt firm, has closed $268.7m for its second fund, according to an SEC filing. CEO and founder Keri Findley’s firm provides non-dilutive financing solutions to startups and companies with capital intensive needs, including fintech and hardware companies.

This fund follows Tacora’s first fund in 2022 which raised $350m, with $250m from Peter Thiel. It’s unclear if Thiel invested in the new fund as the filing lists 28 unnamed investors. Findley won’t confirm or deny and representatives for Thiel didn’t respond to requests.

Founded in 2021 Tacora Capital has made a name for itself providing venture loan solutions backed by solid, specific assets. According to Tacora’s first fund press release this approach reduces risk by lending against good businesses.

Their model appeals to companies looking for funding without diluting their ownership. Findley said the successful deployment of Tacora’s first fund and the growing demand for flexible capital led to the launch of this second fund.

A better alternative to traditional VC investment, venture debt allows companies to keep their equity and raise capital. Tacora’s growth is a sign of increasing confidence in this model in the startup ecosystem.