From the chemical refineries that line the Gulf Coast to the oilfields of West Texas, heavy industry has always been a big part of the economy in the Lone Star State.
Now, as venture capital moves in to the state as part of an exodus from California, a new fund is combining Texas’ industrial past with its high technology future.
That fund is Ironspring Ventures, which has closed its first investment vehicle with $61 million nearly two years after it launched its fundraising efforts.
The fruit of a partnership between Adam Bridgman and Peter J. Holt, the co-founders of an earlier investment vehicle called Holt Ventures, and Ty Findley, a former investor at G.E. Ventures and the Pritzker Group, the firm’s mission is to “accelerate digital adoption across legacy heavy industries,” according to Bridgman.
Each member of the Ironspring team has a long history with industrial technologies and deep roots in the Texas economy. Findley, a managing partner, grew up “in the middle of nowhere in East Texas” but comes from a family of entrepreneurs who built businesses along the Texas and Louisiana border.
“I joined up with our other co-founder and managing partner, Peter Holt,” said Bridgman. “That was really step one for us pursuing this broader mission of investing in legacy industry at the early stage of digital innovation. We were fortunate to find a strong cultural alignment and rare experience with Ty [Findley]. After co-investing over a period of time we got to know each other very well. We joined forces and it’s been a nice journey over the last year-and-a-half of formally launching and formally closing the fund in December.”
The first deal that the three men invested in together was Augmentir, a service providing information and support for remote workers. “Everything comes back to these words ‘digital industrial’ for us,” said Findley. “There’s this massive gap where people forget that almost the majority of GDP in this country is manufacturing.”
So far, Ironspring has invested in four portfolio companies: Mercado, which is developing a service to improve the import process; Icon Build, a company developing 3D printing tools and technologies for the building industry; FastRadius, which brings design tools and services for prototyping and industrial design; and GoContractor, a safety and compliance management service.
The firm’s average check size is around $2.5 million and investments will range from $1 million on the low end to $4 million on the high end, according to the firm’s partners. That means looking for what the firm called “post-seed” deals.
And the firm is looking for technology that is transforming how businesses design products, build them, and provide services and operate across the wide range of industrial output.
“We’re trying to organize around those themes,” said Bridgman.