Chrysalis Ventures oversubscribed its fourth investment fund to
close with $163 million. The regional growth capital firm invests in healthcare services and technology, media and communications, and business services in the U.S. Midwest and South.
The 15-year-old Louisville firm drew strong support from previous institutional and individual investors, and added new limited partners including Morgan Stanley, Credit Suisse, and the Kentucky Teachers' Retirement System. Investment from longtime managing directors David Jones, Koleman Karleski, and Robert Saunders, Chrysalis employees and nine former portfolio companies makes up a large portion of the new fund, which brings Chrysalis' total funds under management to $375 million.
Recent Chrysalis deals have included a lead investment in a $2.5 million extension of a Series A round for VoIP services provider SinglePipe Communications Inc., a $6 million round for advertising technology developer
Digitalsmiths Corp. and a $30 million investment in Intechra Holdings Corp. The firm will continue to look for deals in underserved geographic markets.
"Chrysalis Ventures' 15-year track record is clear proof that entrepreneurs with great ideas are not purely a coastal phenomenon," says Jamey Sperans, Executive Director Alternative Investment Partners for Morgan Stanley in a statement. "We have every confidence that Chrysalis will continue to find value in unexpected places and that investors will benefit as they help young companies realize their potential."
Chrysalis chairman David Jones says in the statement Middle America has historically been overlooked by the financial and investment community and that it remains "under-ventured."
- Clifford Carlsen
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