Venture capital firm Elsewhere Partners announced Thursday (May 12) it had closed Elsewhere Partners II, L.P., a $175 million fund.
Based in Austin, Texas, the company funds B2B software companies that it deems “Elsewhere Outliers,” or businesses based outside of traditional venture capital hubs.
“Not every B2B software founder subscribes to the hyper-growth mentality that tends to run rampant in traditional investment circles,” Chris Pacitti, founder and partner at Elsewhere Partners, said in a press release. “Investing, both our capital and our network, in companies that don’t always get the attention they deserve from the startup funding ecosystem at large, we’ve been able to make deeper connections and partner with founders on the path toward a meaningful exit.”
Working with “capital-efficient” software startups that have gained customer traction and begun to generate substantial revenue, Elsewhere will continue to focus on companies in sectors that include infrastructure, developer tools, workforce management and cybersecurity.
Meanwhile, Elsewhere said it has also promoted Sloane Child and Nick Stoffregen — both of whom had served as vice president — to the role of principal. In this new role, both Child and Stoffregen will work with Elsewhere’s investor team to lead new investments.
In other recent B2B software funding news, eCommerce fulfillment startup Byrd on Tuesday (May 10) closed a $56 million Series C fundraising round to help it expand into other countries.
See also: eCommerce Fulfillment Tech Startup Byrd Raises $56M
Byrd has plans to launch in Sweden, Denmark and Poland later this year, building what the company said would be Europe’s largest connected and independent eCommerce fulfillment network, with more than 30 warehouse locations in 10 countries. The company said its warehouses and service also link with Amazon.
Also this week, British Software-as-a-Service (SaaS) payments infrastructure platform Paddle announced it had raised $200 million in a Series D round valuing the firm at $1.4 billion.
Read more: SaaS Platform Paddle Valued at $1.4B Following $200M Series D
Co-founder and CEO Christian Owens said the company will use the funds to build its platform and “meet the market opportunity that exists for a complete payment infrastructure provider for software companies globally.”