42 Ventures

What is 42 Ventures?

42 Ventures (42V), established in 2006 by entrepreneur Ned Stringham, is not your typical venture firm. With a personal and intimate investment approach, everyone associated with 42V comes from a background of launching and growing their own companies, providing them a true understanding of the entrepreneur's journey.

Ned, his crew, and a close-knit group of advisors who contribute capital to the fund, become real allies in the growth of a business.

With a focus on software, IT, media, artificial intelligence, big data, and mobile industries, 42V targets investments in software-centric businesses that demonstrate strong growth potential and high recurring revenue. Their investment sweet spot is in companies that are past the initial startup phase, generally boasting products that are already in the market, a customer base, and are serving well-defined markets with a focus on specific industries or specialized functions.

The fund primarily seeks out businesses that have not yet reached $5 million in revenue, ensuring they are at a stage where they've proven their technology, service, and business model to be both viable and enticing. 42V's flexible investment strategy implies they do not confine themselves with fixed investment structures or exit time frames.

Investments typically range from $250,000 to $1.5 million. One unique feature of the fund is its evergreen structure, which allows the team to prioritize the time commitment to properly support a new portfolio company over the limitation of financial resources.

Over the years, they have invested in 12 diverse businesses. In partnership with private equity firms, 42V invests in B2B software businesses and leverages their deep operating expertise to expedite the growth of their portfolio companies.

What they say:

We invest in cloud computing, govtech, software.