I called Sydney Thomas yesterday in a hurry.
The just-paused Trump tariffs have proven to be an explosive moving target, and I wanted to get her take: What does it mean to be debuting a first fund at such a distinctly chaotic moment?
“Venture is a long-term asset class, so we’re not expecting to make a return in a day or in a year,” said Thomas, founding general partner at Symphonic Capital. “I’ve been joking that launching a firm at this time requires next-level Zen mastery, because we have to be pushing our companies to be as resilient as possible—while doing the same for ourselves, as we build a new firm.”
Though Thomas started Symphonic in 2022, the firm’s now officially stepping into the light: Symphonic has closed its $13.5 million first fund, and has been investing throughout its fundraising process. The firm’s LPs include Bank of America, Illumen Capital, Uplifting Capital, Candide Group, and Known Financial. The firm is especially interested in backing companies that serve overlooked communities, and its portfolio to date includes Lovu, Rocket Doctor, Bump, Scout, and Waverly.
“We’ve already seen signs of success within Symphonic,” said Kimberli Cavazos Haywood, director of investments at Candide Group, via email. “We’re excited to explore how venture can serve as a force for good…With the deep and persistent inequities in our economic system, we want to rethink the tools we use and adopt a more human-centered approach.”
Thomas was the first employee at Precursor Ventures (which just announced its fifth fund this week). When she struck out on her own, Thomas chose to focus on fintech and digital health.
“We picked those areas because they’re such foundational verticals,” she said. “They align with our long-term view and are out of the hype. We’re not subject to the whims of consumers, because these sectors are not only evergreen, but also necessary during the good times and especially during the challenging times.”
Shruti Shah, who joined Symphonic as a partner in late 2022, is especially candid about what she thinks can change in venture, and the specific challenges of a founder. She joined Thomas, she says, “to be the VC she didn’t have” when she was building Craigslist challenger Move Loot, which sold to Handy in 2016.
“We got really big, really fast,” she said. “We had a group of investors who changed their minds about our strategy, and asked us to change the business model. It didn’t work the way we hoped, and we ended up selling the company for parts.”
The experience has directly informed how Shah approaches founders: “How do you control your own destiny? Learn to trust your gut. Learn to build confidence in your decision-making. Really think about how you structure your process and what you’re tracking from the very beginning, so you can get to break even as quickly as possible.”
Shah and Thomas, who first met in 2016 while Shah was an entrepreneur-in-residence at Silicon Valley Bank, go to concerts together, and have even planned Symphonic’s annual general meeting around New Orleans Jazz Fest.
“Everyone has a reference point for a symphony, even if you haven’t been to one,” said Thomas. “You know, in theory, that it requires this harmonious collection of experts in their field, coming together to build something extremely beautiful that’s only possible because each instrument is unique.”
Venture is in a tough spot that, despite AI hype and some positivity around exits in recent months, continues to look like it’ll be tough amid serious economic volatility. So, the sector needs new songs, so to speak.
“The reset in venture has officially happened, we’re not tied to anything from 2021, we’re not tied to the past,” said Thomas. “There’s room to build outside of the lines if you’re courageous enough to do so.”
See you tomorrow,
Allie Garfinkle
X: @agarfinks
Email: [email protected]
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VENTURE DEALS
- Nuro, a Mountain View, Calif.-based autonomous driving technology developer, raised $106 million in Series E funding, valuing the company at $6 billion, from T. Rowe Price Associates, Fidelity Management & Research Company, Tiger Global Management, and others.
- Tessell, a San Francisco-based Database as a Service platform, raised $60 million in Series B funding. WestBridge Capital led the round and was joined by B37 Ventures, Rocketship.vc, and existing investor Lightspeed Venture Partners.
- Anecdotes, a Palo Alto-based AI-powered governance, risk, and compliance platform, raised $55 million in Series B funding. DTCP led the extended $30 million round and was joined by Glilot, Vertex, and Red Dot. Glilot led the initial $25 million round and was joined by Vertex and Red Dot.
- Portnox, an Austin-based cybersecurity company, raised $37.5 million in Series B funding from Updata Partners.
- TransFICC, a London-based connectivity and workflow solutions provider for the fixed income and derivatives markets, raised $25 million in Series B funding. Citadel Securities led the round and was joined by BlackFin Tech and existing investors.
- Outtake, a Brooklyn-based AI cybersecurity agents developer, raised $16.5 million in Series A funding. CRV led the round and was joined by S32, Nikesh Arora, and Bill Ackman. Slow, Night, Mantis, and others led the $3.5 million seed round.
- Remedy Scientific, an Oakland-based environmental remediation technology company, raised $11 million in seed funding from Eclipse, Refactor, Cantos, and Box Group.
- Glimpse, a New York City-based AI-powered, end-to-end deduction management service for CPG brands, raised $10 million in Series A funding. 8VC led the round and was joined by Allison Pickens and existing investors YCombinator, Origin Ventures, and Informed Ventures.
- Ottometric, a Boston-based advanced driver assistance systems training automation company, raised $10 million in Series A funding. Schooner Capital led the round and was joined by PS27, Somersault Ventures, and existing investors Rally Ventures and Proeza Ventures.
- Vaxess Technologies, a Woburn, Mass.-based drug delivery patch technology developer, raised $9 million in funding from RA Capital Management and Engine Ventures.
- Octane, a New York City-based AI-powered blockchain cybersecurity platform, raised $6.8 million in seed funding. Archetype and Winklevoss Capital led the round and was joined by Gemini, Circle, Legion Capital, angel investors, and others.
- Pax, a San Francisco-based duty drawback process automation company, raised $4.5 million in seed funding. Initialized Capital led the round and was joined by Sancus, Basis Set, Soma Capital, angel investors, and others.
- Optise, a Reykjavik, Iceland-based AI-powered website insights provider, raised $2.2 million in pre-seed funding from Frumtak Ventures.
PRIVATE EQUITY
- Bain Capital agreed to acquire a 9.9% stake in Lincoln Financial, a Radnor, Pa.-based insurance and financial services company, for $825 million.
- AIP Management, backed by Storebrand Asset Management, agreed to invest approximately $500 million in Silicon Ranch, a Nashville-based solar energy and carbon solutions provider.
- Duetto, backed by GrowthCurve Capital, acquired HotStats, a Worcester, England-based financial benchmarking solutions provider for hotels. Financial terms were not disclosed.
- GHC|orcutt winslow, a portfolio company of Bernhard Capital Partners, acquired Straughn Trout Architects, a Lakeland, Fla.-based architecture firm for education, commercial, and municipal projects. Financial terms were not disclosed.
- Loenbro, a portfolio company of Braemont Capital, acquired Stewart Electric, a Henderson, Nev.-based electrical services provider for the data center market. Financial terms were not disclosed.
- New Mountain Capital and Francisco Partners acquired a co-majority stake in Office Ally, a Vancouver, Wash.-based healthcare technology company. Financial terms were not disclosed.
- The Kleinfelder Group, a portfolio company of Lindsay Goldberg, acquired Veenstra & Kimm, a West Des Moines, Iowa-based design, engineering, and environmental solutions provider. Financial terms were not disclosed.
EXITS
- Bain Capital agreed to acquire HealthEdge, a Burlington, Mass.-based healthcare technology solutions provider, from Blackstone in a deal valued at approximately $2.6 billion, including debt, according to the Financial Times.
- DEME agreed to acquire Havfram, an Oslo-based offshore wind infrastructure company, from Sandbrook Capital and PSP Investments for approximately €900 million ($994.3 million).
- Frontline Road Safety acquired InfraStripe, a Charlotte-based roadway safety solutions provider, from Soundcore Capital Partners. Financial terms were not disclosed.
- Tradebe acquired Florachem, a Jacksonville-based citrus and pine ingredients supplier, from SK Capital Partners. Financial terms were not disclosed.
OTHER
- Transcarent, a San Francisco-based health care access company, merged with Accolade, a Seattle-based health care services provider, in a deal valued at approximately $621 million.
- Gregory J. Goff invested $10 million in Phillips 66, a Houston-based energy company.
FUNDS + FUNDS OF FUNDS
- GEM, a Charlotte-based investment management firm, raised $450 million for its first fund focused on independent sponsors.
- Lerer Hippeau, a New York City-based venture capital firm, raised $200 million for its ninth fund focused on early-stage companies.
- Precursor Ventures, a San Francisco-based venture capital firm, raised $66 million for its fifth fund focused on early-stage companies.
PEOPLE
- Garnett Station Partners, a New York City-based principal investment firm, added Mike Drittel as a principal. Previously, he was at General Atlantic.
