Data Point Capital Raises An Oversubscribed Third Fund
With over $100 million, VC Firm Will Continue To Invest In Highly Scalable, Innovative, Technology Companies Disrupting Large Markets
17 Mar, 2021, 08:00 ET
BOSTON, March 17, 2021 /PRNewswire/ -- Data Point Capital ("DPC"), a prominent, Boston-based venture capital firm focused on funding highly scalable technology companies, today announced that it has closed Data Point Capital III above its $100 million target.
"We could not be more pleased with the closing of this newest fund," said Scott Savitz, Founder and Managing Partner of Data Point Capital. "At this time of accelerating technology adoption -- across virtually all business sectors -- we believe it's an opportune time to be an investor. This larger fund will allow us to take more sizable stakes in our portfolio companies while maintaining Data Point Capital's metrics-based, disciplined approach to investing in innovative businesses that are run by great teams and are demonstrating a tremendous ability to scale."
Savitz took the occasion to announce investments already in this newest fund including: Resident, the fastest growing mattress e-tailer in the U.S., achieving over $600 million in sales in 2020; Raptor Maps, a solar lifecycle management company in which Data Point Capital co-led their Series A round, and has tripled year-over-year revenues for the past three years; and most recently, an investment in CABA Design which is a multi-brand online retailer with a proprietary manufacturing platform for delivering affordable, custom furniture, which closed out 2020 with revenues up over 300% from 2019.
Data Point Capital's prior fund is realizing similar success. Investments in that fund include Paintzen, a marketplace for painters which grew over 800% from the time of DPC II's initial investment up until its acquisition in 2018, and DraftKings, which now trades as a public company on the NASDAQ under the symbol DKNG with a $26 billion market-cap. In fact, every company in this portfolio has exited, raised a substantial up-round led by new investors, or is close to sustainable profitability. As Mike Majors, Managing Partner at Data Point proudly states: "At Data Point we see ourselves as sitting on the same side of the table as the entrepreneurs. We understand the stress and risks that come with early-stage tech investing; at the same time, we try to leverage our expertise as operators as much as possible so that our entrepreneurs do not need to experience failure. Scott Savitz founded Shoebuy.com during the dot-com implosion and on limited outside capital brought it very quickly to profitability and a very successful exit. I was CFO of Indeed, which raised a single round of $5 million before being acquired for close to $1 Billion. Data Point knows these businesses can be hard; however, working with great, very real, scalable businesses that aren't living fundraising round to fundraising round can be a lot of fun."
Adds Geoff Oblak, the newest Managing Partner at Data Point: "I have experienced firsthand how Data Point Capital's intensely disciplined approach and deep bench of star operators that make up the Data Point Capital team has led to wonderful collaboration with portfolio executive teams, superior performance, and a number of investments that have rapidly emerged as category leaders. I am thrilled to be on the team."
In addition to Savitz, Majors, and Oblak, the Data Point team also includes other successful entrepreneurs and business executives that have created over $50 billion in value through companies they either founded or ran throughout the New England region. They include Lars Albright (Co-Founder Quattro Wireless/CEO of Session M), Colin Angle (Co-Founder iRobot), Fred Bertino (Co-Founder MMB and former President and Chief Creative Officer Hill, Holliday), Desh Deshpande (Co-Founder Cascade and Sycamore Networks), John Giuliani (former CEO of Dotomi and former CEO of Conversant), Gail Goodman (former CEO of Constant Contact), Nick Grewal (Founder/former CEO of Nashoba Networks), Diane Hessan (Co-Founder/former CEO of Communispace), Steve Papa (Co-Founder/former CEO of Endeca), Alan Phillips (Co-Founder Where.com), Jim Salzano (former CEO of Easy Spirit and former President of Clarks), and Len Schlesinger (former Vice Chairman, COO Limited Brands/Victoria Secret). Leonardo DiCaprio, Academy Award® winning actor and environmental activist, also serves as a Special Advisor to Data Point Capital.
About Data Point Capital
Data Point Capital focuses on highly scalable, capital-efficient technology companies. Current categories of interest include the consumer Internet (e-commerce, mobile, media), cloud-based enterprise software (cyber security, artificial intelligence, marketing tech), and the Internet of Things. We invest in data-driven business where our highly analytical approach can help entrepreneurs identify the key performance indicators to scale their businesses. The firm is made up of business executives and internet leaders who have created tremendous value through building numerous successful companies (in many cases, repeatedly). At Data Point Capital, we think of ourselves as entrepreneurs helping entrepreneurs and that by investing with independent thinking based on real, differentiated innovation and complementary key metrics, superior results can be achieved. Representative investments include clypd, DraftKings, Paintzen, Raptor Maps, Reblaze, Rent the Runway and Resident.
SOURCE Data Point Capital
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