There’s a growing tech scene in Austin, and the founders of TXV partners want to take advantage of it.
The early stage venture capital fund founded by Princeton graduates Marcus Stroud and Brandon Allen, is looking to bring a new approach to investing by focusing on startups geared towards the millennial and Gen-Z market.
Stroud, 25, and Allen, 24, launched their firm in Dallas late last year and are opening an office in Austin, Texas to take advantage of the growing tech ecosystem in the city.
“We figured out really quickly that the tech scene in Austin is becoming one of the premier locations in the country,” Stroud told Crunchbase News. “We knew we needed a footprint in a city that was becoming the birthplace for so many great companies.”
TXV Partners plans to raise $50 million to invest in up to 15 companies each year. It currently has $10 million soft commitments, according to CrunchBase.
The firm will target consumer products, sports, media, and entertainment. They have made one $500,000 seed round investment in Austin-based streaming company Matter Music, Inc.
Stroud tells Crunchbase that since investing in Matter Music, several larger VC firms have expressed interested in the company. The founder attributes their young age to one of the reasons they were able to beat out seasoned venture capitalists.
“People are shocked at our age. Plus, you don’t really see two black kids from Princeton in VC,” Stroud told Crunchbase. “That’s been a shock for some, too.”