Boston-based venture firm .406 Ventures, specializing in enterprise-focused startups in healthcare, data and AI, and cybersecurity, has closed its fifth fund with $265 million in capital commitments.
Firm Background and Leadership
Founded by Liam Donohue, Maria Cirino, and Larry Begley, .406 Ventures brings decades of experience to the venture capital landscape. Donohue, previously the founder of Arcadia Partners, leads the firm alongside Cirino, co-founder of Guardent, and Begley, former Razorfish CFO.
Investor Backing and Fund Growth
The fifth fund garnered support from both new and existing limited partners, including university endowments, foundations, pension plans, and strategic investors. With this latest fund, totaling $1.4 billion across its core and opportunity funds, .406 Ventures continues its mission of fostering innovation in its target sectors.
Investment Focus and Strategy
Maintaining its steadfast focus on healthcare, data and AI, and cybersecurity, .406 Ventures leverages the vibrant Boston tech ecosystem while also pursuing opportunities on a national scale. Notably, the firm has observed a trend of repeat founders returning for subsequent investments, underscoring its commitment to long-term partnerships.
Portfolio Success and Recent Exits
With a portfolio comprising 87 companies, .406 Ventures boasts numerous successful exits and public offerings. Recent highlights include Iora Health’s acquisition by OneMedical, AbleTo’s integration with Optum Health, and Carbon Black and CloudHealth Technologies becoming part of VMware. Additionally, cybersecurity insurance provider Corvus was acquired by Travelers in 2023.
Future Outlook and Investment Pipeline
Already deploying capital from its latest fund, .406 Ventures has invested in promising startups like Portrait Analytics, which offers a generative AI platform for investment research. With plans to back over 20 companies, the firm remains vigilant in identifying emerging technologies and collaborating with industry leaders to address evolving threats and opportunities.
Conclusion: Anticipating the Future of Innovation
As .406 Ventures continues to assess startups within its target verticals, it remains forward-thinking, leveraging insights from its network of C-suite executives and anticipating future trends and vulnerabilities. With a proven track record and a commitment to supporting founders throughout their entrepreneurial journey, .406 Ventures stands poised to drive impactful innovation in the years to come.
