Fund Profile: Grotech Ventures Takes a Personal Approach to Investing

By Brett Cloetingh and Melissa Tarkett

Grotech Ventures is an established early stage venture capital firm headquartered in Tysons Corner, Virginia. Entrepreneurial in spirit, Grotech is constantly “looking around the corner for the next big idea.” Dedicated to early investing in high potential technology companies, Grotech invests east of the Rocky Mountains with a focus in the DC metro area. These geographical parameters enable them to form close partnerships with the companies and communities in which they invest. Their approach to investing is centered on building personal, long-term relationships in the tech community.

Grotech has invested over $1 billion since their inception. With a team of dynamic partners, each with their own experience in both entrepreneurship and executive roles, Grotech has successfully helped to build over 150 technology companies.

Grotech Ventures initial investment sweet-spot ranges from $500K to $5MM, with most initial investments in the in the $1 to $3MM range. Grotech almost always co-invests with other VCs.  In addition to cash investments, Grotech’s leaders seek to meaningfully contribute to each company’s success by leveraging their experiences and insights as a member of the board and resource advisor to their portfolio companies. Grotech reserves significant capital for the early and growth stages of the company, sticking with their mission of personal, long-term investments.

Grotech’s investment portfolio is software-centric, with a technology sector focus that includes:

• Social & Digital Media and E-Commerce
• Mobile, Cloud, and Infrastructure Software
• Enterprise Software and Big Data Analytics
• Security Technologies
• Healthcare Information Technology

They do not invest in semiconductors, foreign entities, or biotech companies. Grotech typically has an eight to ten-year turnaround on their investments and, because of the extensive time it takes to get biotech products approved and available for sale, they do not invest in this area.

Grotech looks for companies with some revenue traction and sales-leaning CEOs who are good at attracting strong talent.

Some of Grotech’s portfolio companies include Booker, BuySafe, 6Fusion, Clarabridge, Healthcare Interactive, Anypresence, Invincea, Cloudelements, Livingsocial, Dizzion, Logi Analytics, Parse.ly, Passport, Ryft, Royalty Exchange, and Urban Bound.

With an investment history of over 30 years and an experienced team in the technology industry, Grotech Ventures has a created a path to success for high potential technology companies that they can help grow and foster into an established brand.

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