Austin Emerges as a Hot Spot for Silicon Valley Investors
The pandemic has prompted venture capitalists to rethink their home bases. Some are headed to Texas.
Austin’s startup scene is getting a jolt of new capital, this time from a wave of investors transplanted from Silicon Valley.
Since March, Sapphire Ventures, Draper Associates, 8VC and Breyer Capital have either opened an Austin office, hired a local partner or are considering an outpost there. Austin’s lack of a state income tax, plus its lower cost of living, is attracting venture capitalists and entrepreneurs, and a push toward remote work has spurred them to rethink where they live.
Local venture firms are also expanding. Third Craft, a new firm backed by former Heinz CEO William Johnson, is raising up to $75 million to invest in Austin consumer startups, according to two people familiar with the matter. And the co-founder of men’s apparel company Bonobos has joined Austin-based Brand Foundry Ventures as a general partner in its biggest fund yet, according to three people familiar with the matter.