About $350 million was raised by Tacora’s first fund in 2022, which included $250 million from well-known Republican billionaire and investor Peter Thiel. At the time, Bloomberg noted that this was an “unusually large investment” for Thiel.
Thiel’s involvement in Tacora’s most recent fund is unclear: The registration only reveals that it has 28 (unnamed) investors. Keri Findley, the CEO and founder of Tacora, would not say whether Thiel made an investment.
Austin is home to Tacora, which was founded in 2021. According to Bloomberg, Findley was a partner at the hedge fund Third Point when she first met Thiel through his venture capital business, Thiel Capital.
The desire for “flexible, non-leveraged” financing options and the successful implementation of the first fund are reflected in the new fund.
Unlike traditional venture capital organizations, venture debt firms lend money to startups and other businesses rather than purchasing their shares.
Founders who require funding but do not wish to reduce their ownership stake may find this type of financing appealing. Tacora focuses on loans to enterprises that require a lot of capital, such as hardware and fintech firms.
Naturally, the risk associated with venture debt is that entrepreneurs, who frequently spend large sums of money, won’t be able to repay their loans.
Tacora also says it only going to back the loans against “specific, strong assets owned by well-positioned companies”.
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