Velocity Venture Capital Closes $15 Million Second Fund

FOLSOM, Calif.--(BUSINESS WIRE)--Velocity Venture Capital, a venture capital fund that invests in technology companies in the greater Sacramento area, announced today that it has closed its second fund with $15 million raised and is preparing for its third fund with a target fund size of $60 million.

“The old view of the Greater Sacramento area as a government town is gone. Investors today see the vitality of the region’s technology economy and the innovation coming out of our major technology companies, as well as our research universities.”

With its first two funds, Velocity already has made 11 investments in companies in the greater Sacramento region, including companies like Jadoo Power and Marquiss Wind Power, which are taking a leadership role in Sacramento’s efforts to become a national leader in clean energy innovation.

The Velocity fund management team plans to complete its Fund II portfolio by adding up to three more portfolio companies for a potential total of 14 investments in California’s Capital region.

Velocity has deployed a unique approach to venture capital with an innovative fund management organizational structure and company-building approach. Along with its General Partners, Velocity has a stable of seasoned industry experts called Venture Partners that are assisting portfolio companies in various respects, including securing customers, recruiting management talent, establishing industry partnerships, and syndicating rounds of financing.

Beyond providing capital for entrepreneurs, Velocity’s company-building approach includes active roles by the General Partners with regard to such matters as assistance with strategy, fundraising, intellectual property, product development, and access to the Velocity network of resources. In addition, Velocity is providing incubation services for 5 of its 11 portfolio companies at its office building in Folsom, a suburb of Sacramento.

“With Velocity’s Fund II we are proving that you can build a strong portfolio of Sacramento-based companies that create value for investors,” said Jack Crawford Jr., General Partner for Velocity. “Our investments focus on a wide range of seed and early stage technology companies and we are pleased with their progress to date. As Sacramento progresses toward becoming a national leader in clean technology, we are seeing more and more opportunities in that area.”

Investments have ranged from $100,000 to $3.5 million in the following Velocity portfolio companies:

• Marquiss Wind Power, headquartered in Folsom, sells its patented AeroPoint Ducted Wind Turbine into the commercial and industrial building sectors of the world-wide economy.
• Jadoo Power, headquartered in Folsom, a leading supplier of portable fuel cells that provide reliable, safe, and efficient power for a variety of applications.
• anyComm Corporation, headquartered in El Dorado Hills, a Digital Home Solutions Company that utilizes a TV-based menu and a single remote control, providing a home with a simple and single point of interaction to entertainment, communications, home automation, security and networking.
• Start-Up TV Network Inc., headquartered in Folsom, an early-stage company established to create a web-based deal flow network for angel investors and start-up companies.
• Razor Audio Solutions, Inc., headquartered in Folsom, is a seed-stage entertainment technology company that has created next generation audio technology for deployment in speakers for the fast growing multi-billion dollar digital home market.
• Revionics, headquartered in Granite Bay, is a leading provider of price optimization systems to independent retailers. Revionics' Retail Advanced Pricing System (RAPS) generates increased sales and profits through sophisticated price optimization technology as a subscription-based, Software as a Service (SaaS).
• Freepath, Inc., headquartered in Folsom, is a leading provider of nonlinear presentation solutions that empower communications to create visually rich presentations, regardless of audio/video configuration, technical skill, or audience size.
• emTRAiN, Inc., headquartered in Sacramento, is a leading provider of web-based human resources compliance training. With more than 800 customers and growing since its founding in 2000, the company helps employers effectively and efficiently manage their compliance learning programs.
• JobSight Solutions, Inc., headquartered in Folsom, is a start-up company founded for the purpose of developing, manufacturing and marketing fixed wireless products. Job LinkT, the Company's premier product is a variable network/ multi-line fixed cellular terminal designed as an alternative to standard landline service for phone, fax, and internet access in mobile and temporary facilities.
• KeyEye Communications, Inc., headquartered in Sacramento, develops semiconductors enabling high-speed data transmission over copper wiring.
• Riavo Systems, Inc., headquartered in Folsom, is an early-stage company that is creating a revolutionary way to network and secure the digital home for IP-based, triple-play services (i.e. HDTV), telephone and broadband internet.

Crawford noted that “investors’ perceptions of Sacramento have dramatically changed with an influx of thousands of technology executives from the Silicon Valley over the last decade and a billion dollars of local successful exits by start-up companies over the last few years.”

Jacob Jorgensen, also a General Partner at Velocity, added: “The old view of the Greater Sacramento area as a government town is gone. Investors today see the vitality of the region’s technology economy and the innovation coming out of our major technology companies, as well as our research universities.”

About Velocity Venture Capital

Velocity Venture Capital invests in seed and early-stage technology companies in the greater Sacramento region. The firm drives the success of Sacramento-based companies with investment capital and management support. Velocity is the first venture capital firm to focus exclusively on California's capital region. For more information, please visit www.velocityvc.com