Former Corporate VCs Raise $110M Fund

The Rise of Corporate Venture Funds and Counterpart Ventures

An increasing number of teams are currently securing venture funding, leading to a predictable surge in corporate venture firms establishing independent entities.

Counterpart Ventures provides a compelling example. Established by Patrick Eggen and Joe Saijo, this San Francisco-based firm, now three years old, has recently finalized a $110 million fund.

This capital raise follows an initial investment phase across four companies, serving as a preliminary test for the fund’s strategy. The amount secured is substantial for a relatively new venture.

Founders' Extensive Experience

The firm’s limited partners – identities currently undisclosed – evidently hold a high regard for the partners’ past performance. Eggen spearheaded the Bay Area operations of Qualcomm Ventures starting in 2005.

Upon his departure in spring 2018, he held the position of managing partner overseeing all of North America for the organization. Startups often sought affiliation with Qualcomm, as demonstrated by investments in companies like Matterport, Noom, and Cruise Automation during Eggen’s tenure.

He specifically cites his role in advocating for Qualcomm’s Series A investment in Zoom, a decision made when many other venture firms doubted the need for another video conferencing solution.

Saijo also brings significant experience to the table. After a period in business development at Hitachi, he became president and managing partner at Recruit Strategic Partners, the corporate venture arm of Japan’s Recruit Holdings.

His investment portfolio includes notable companies such as Palo Alto Networks, DocuSign, 99designs, DataRobot, ShipBob, and Noom (in conjunction with Qualcomm Ventures).

Leveraging Established Networks

The extensive networks cultivated by Eggen and Saijo were undoubtedly attractive to investors. Their years within the corporate VC landscape have resulted in connections with numerous founders.

Corporate venture capital operates as a distinct and influential network, and the pair actively maintained relationships with other corporate venture arms through events specifically designed for the CVC community.

Investment Focus and Strategy

Counterpart Ventures, also led by senior associate Mikey Kailis, concentrates its investments on B2B SaaS, marketplace, and mobility startups.

The firm aims to lead or co-lead investment rounds categorized as “tweener” rounds, occurring between a company’s Series A and Series B funding stages.

Recent investments include Cloudbeds, Intricately, and Prismo Systems, funded at the Series B, Series A, and Series B stages, respectively.