First Star Ventures Seeks $40 Million for Third Fund to Support Deep Tech Startups

Summary: First Star, an influential venture capital firm supporting deep tech startups such as Plus One and Fyto, aims to raise up to $40 million for its upcoming third venture fund.

Investing in Deep Tech: The Growth of First Star Ventures

Cambridge, Massachusetts-based First Star Ventures is on the verge of a significant financial milestone. The firm, which specializes in early-stage investments in sectors like robotics, blockchain, artificial intelligence (AI), and machine learning, is poised to raise up to $40 million for its third venture fund. According to filings with the Securities and Exchange Commission, the initial closing amount has not been disclosed, but the proposed capital marks a substantial increase from its previous funds.

A Brief History of First Star Ventures

Founded under the name Procyon Ventures, First Star launched its first fund in 2014, raising $10 million. This was followed by a second fund in 2019, which totaled $25 million. The firm’s founding partners, Millie Liu and Drew Volpe, possess strong ties to the Massachusetts Institute of Technology (MIT) as researchers and to MassChallenge, a Boston-based startup incubator that aids emerging companies through mentorship.

Focus Areas and Recent Investments

While First Star has yet to release specific details regarding its new fund, recent investments offer insight into its future orientations. Notable transactions this year include:

• A $7 million seed round for ChiselStrike, a company developing innovative tools for back-end software developers.
• A $12 million Series A for Zanskar, which leverages AI to explore geothermal resources and aids in decarbonizing the U.S. power grid.

These ventures reflect First Star’s commitment to advancing technology that addresses critical global issues.

Climate Technology: First Star’s Commitment

In line with its investment strategy, First Star has also backed Fyto, a startup focused on climate technology. Fyto aims to minimize water waste and greenhouse gas emissions by utilizing robotics to cultivate "ultra-sustainable" cattle feed. The emphasis on environmental sustainability mirrors broader trends within the venture capital landscape, as firms increasingly seek solutions to the climate crisis.

Competing VC Firms in Deep Tech

First Star is not alone in its mission. Cantos, another early-stage VC focused on deep tech, has also launched a third fund aimed at raising $50 million, specifically targeting issues related to climate change. This competitive landscape indicates an escalating focus on deep tech startups as essential players in addressing global challenges.

Conclusion

First Star Ventures stands at the threshold of significant growth as it prepares to raise a substantial new fund focused on deep tech investments. With a proven track record and strategic partnerships, the firm is well-positioned to continue making impactful contributions to sectors that blend technology with sustainability. As investors increasingly prioritize climate-conscious innovations, First Star’s upcoming ventures will likely play a crucial role in shaping the future of deep tech.

For more information on deep tech investments, check out TechCrunch and related articles on investment strategies in the tech sector.