Snatched Ventures, an institutional early-stage deeptech firm, is actively raising a $100 million fund with an initial close target of $30 million. Led by Managing General Partner Kevin Colas, the firm is positioning itself at the forefront of investing in sustainable operational transformation and efficiency. Its unique approach combines a sharp focus on eight science-based technologies with six specific thematic areas, all underpinned by stringent financial underwriting filters designed to identify companies poised for both environmental and economic resilience. This strategic initiative comes at a pivotal moment for the venture capital landscape, which is recalibrating after a period of significant expansion and subsequent market adjustments.
The Genesis of Snatched Ventures: From Angel Collective to Institutional Fund
The foundation for Snatched Ventures was laid through the Empire Angel Collective (EAC), an investment platform established by Kevin Colas in 2020. EAC, effectively regarded as Fund I, demonstrated a robust investment thesis by deploying approximately $10 million across more than 40 startups, exhibiting a strong bias towards DeepTech. This early exposure to complex technological innovation provided a fertile testing ground for the investment strategies that now define Snatched Ventures.
Concurrently, Alessandro, who would later become Colas’s co-GP at Snatched Ventures, was leading DeepTech investments at Hyundai’s Corporate Venture Capital (CVC) arm. This dual experience, combining an angel collective’s agility with a CVC’s strategic corporate perspective, has forged a distinctive investment philosophy. The combined track records of Colas and Alessandro underpin Snatched Ventures’ impressive metrics: a 4.4x Total Value to Paid-In Capital (TVPI), a 151% Distributed to Paid-In Capital (DPI), and a remarkably low 1.6% loss ratio across 24 transactions involving 22 companies. This portfolio includes notable successes such as five unicorns, one IPO exit, and three acquisitions, including one all-cash deal, highlighting a proven ability to identify and nurture high-growth DeepTech enterprises.
The EAC continues to operate, deploying new investments by vintage, with four DeepTech investments already made in 2024. These, along with commitments from Snatched Ventures’ advisors, represent warehouse investments intended to roll into the forthcoming Fund II, Snatched Ventures Alpha, LP, signifying a seamless transition and continuity of investment strategy.
A Distinctive Investment Thesis: DeepTech, Sustainability, and the "4Fs"
Snatched Ventures sets itself apart through its highly focused investment thesis. The firm targets early-stage DeepTech companies that are not just innovative but are also ready for immediate deployment and scaling, eschewing the long development cycles often associated with nascent technologies. Colas emphasizes investing in solutions that address "complex engineering challenges with large environmental, economical, and social impact," but are "ready-to-deploy and scale now, not in ten years."
This immediate applicability is crucial, given the urgency of global challenges related to climate change, resource scarcity, and operational efficiency. The firm’s technological scope is broad yet precise, encompassing eight foundational science-based technologies: Artificial Intelligence/Machine Learning (AI/ML), materials science, advanced manufacturing, biotechnology, optics, electronics, robotics, and blockchain. These technologies are seen as the bedrock for the next era of sustainable operational transformation.
The investment strategy is further refined by focusing on six specific thematic areas where the team possesses deep expertise and a track record of successful investments:
- Transportation & Logistics: Innovations for greener, more efficient supply chains and mobility.
- Energy & Water: Solutions for renewable energy, energy storage, smart grids, and water management.
- Food & Agriculture: Technologies for sustainable food production, alternative proteins, and precision agriculture.
- Fashion & Beauty: Circular economy models, sustainable materials, and ethical production processes.
- Precision Medicine & Aging: Advanced diagnostics, personalized treatments, and technologies extending healthy lifespans.
- Retail & E-commerce: Innovations enhancing efficiency, sustainability, and customer experience in commerce.
Beyond technological and thematic alignment, Snatched Ventures applies a rigorous set of financial filters, dubbed the "4Fs," to ensure robust financial sustainability. These criteria are mandatory for leading Series A rounds and opportunistically participating in Seed and Series B rounds when minimum ownership and the "4Fs" are met:
- Minimum Early Revenue: $1 million
- Gross Margin: 50%
- Cash Conversion Score: 0.25x
- Revenue-to-Capex Ratio: 3x
These stringent financial benchmarks are designed to identify companies that not only offer groundbreaking technology but also possess a clear path to profitability and resilience across diverse economic cycles. This approach stands in contrast to the growth-at-all-costs mentality that characterized some segments of the venture market in recent years.
The Evolving Venture Capital Landscape: A Call for "Return to DNA"
Kevin Colas offers a pointed perspective on the current venture capital landscape, particularly in California, historically the epicenter of venture investment. He argues that the industry needs to "return to its initial real DNA," which he defines as financing innovation with a hands-on, supportive approach. This involves not just providing capital but actively assisting portfolio companies with client introductions, strategic partnerships, vetted vendors, professional services, new hires, strategy definition, go-to-market execution, and financial discipline.
Colas’s observations resonate with broader industry sentiment following a period of unprecedented capital deployment and valuation spikes between 2019 and 2022. "After a terrible global pandemic never to forget and several years of excessive valuations… the venture industry derives away from its roots and DNA towards a competition of the bigger checks driven by considerable fundraises of marquee funds," he states. This concentration of dry powder in the hands of a few large firms, he contends, has not always translated into superior performance, prompting a critical re-evaluation of investment practices.
Data from PitchBook and NVCA supports this narrative. Following a record-breaking 2021, global VC funding experienced a significant downturn in 2022 and 2023, with valuations correcting and a heightened focus on profitability. Q1 2024 data indicates a continued cautious approach, although DeepTech has shown relative resilience due to its fundamental nature and long-term impact potential. According to reports, while overall VC deal value declined, investment in climate tech and other deep tech categories has maintained a steady pace, driven by both private and public sector imperatives.
Colas strongly advocates for "deep due diligence" as an essential fiduciary duty, irrespective of market cycles or the fear of missing out (FOMO). He believes investment managers should treat Limited Partners’ (LPs’) capital as their own, fostering companies towards self-sustainability and profitability rather than dependence on continuous fundraising. "VCS should push startups to build businesses sustaining themselves and becoming quickly profitable, able to fly with their own wings," he asserts, challenging the notion of startups gobbling large amounts of capital indefinitely until an IPO or M&A exit.
Broader Implications and the Role of Sustainable DeepTech
The philosophy espoused by Snatched Ventures carries significant implications for the future of innovation and economic development. By focusing on "companies that combine environmental and financial sustainability and scalability," the firm is tapping into a growing demand for impactful investments. The global ESG investing market continues to expand, with investors increasingly seeking opportunities that deliver both financial returns and positive societal or environmental outcomes. DeepTech, by its very nature, often addresses grand challenges, making it a natural fit for this trend.
The emphasis on "ready-to-deploy" solutions reflects a market maturation in DeepTech. Historically, DeepTech often faced challenges related to long R&D cycles and high capital intensity. However, advancements in foundational technologies, coupled with increasing urgency to solve global problems, have accelerated the timeline from lab to market for many innovations. Firms like Snatched Ventures are capitalizing on this inflection point, identifying technologies that have moved past fundamental research into viable commercial applications.
Moreover, Snatched Ventures’ strategy to actively support portfolio companies beyond capital infusion aligns with best practices in venture capital. A hands-on approach, including strategic guidance, operational support, and network leverage, has consistently been linked to higher success rates for startups. This partnership model is particularly critical for DeepTech companies, which often require specialized expertise and connections to navigate complex regulatory environments, market adoption challenges, and scaling hurdles.
Engaging with the Ecosystem: The Benefits of NVCA Membership
As a member of the National Venture Capital Association (NVCA), Snatched Ventures seeks to leverage the organization’s extensive network and advocacy platforms. Colas highlights several key benefits: "Get to know more investor peers across the categories for deal syndication and leading/co-leading for Snatched, portfolio support, exit opportunities and thematic development." This emphasizes the collaborative nature of venture capital, where syndication can de-risk investments, expand reach, and provide additional expertise for portfolio companies.
Beyond deal-making, Colas expresses an interest in contributing to the broader policy discourse: "Get involved in the activism and policy advisory groups / think tanks of NVCA to at my humble scale try to influence positive change and policies evolutions for venture and deeptech." The NVCA plays a crucial role in shaping legislative and regulatory environments that impact venture capital, advocating for policies that foster innovation, support startups, and ensure a healthy investment climate. Active participation in such groups allows firms like Snatched Ventures to contribute their on-the-ground insights, particularly concerning the unique needs and challenges of DeepTech.
The Road Ahead: Building a Lasting DeepTech Platform
The immediate future for Snatched Ventures is centered on its fundraising efforts for the $100 million fund, with an initial close at $30 million. Colas is focused on securing a "value-added balance of financial, corporate, family office strategic LPs," underscoring a desire for partners who can bring more than just capital, potentially offering co-investing opportunities and strategic synergies.
The deployment strategy is equally deliberate, prioritizing proactive sourcing over reactive engagement. This involves "deep dives to source pro-actively vs reactively sourcing with deal flow exchanges, conferences or accelerators and incubators." This methodical approach aims to identify the most promising early-stage companies within their mapped investment spaces, ensuring alignment with their 8 deep technologies and 6 thematics.
Ultimately, Snatched Ventures envisions building a "lasting platform of thematic deeptech funds" that will fundamentally change how society lives and how businesses leverage innovation. The goal is to boost efficiency while accelerating the transition towards truly sustainable models for the planet and its inhabitants. Colas articulates this long-term vision with a profound sense of purpose, stating, "For our kids, for us and to avoid having to one day flee on Mars with Mr. Musk because we ended up destroying this amazingly beautiful and well designed blue planet." This statement encapsulates the firm’s conviction that DeepTech, responsibly financed and strategically nurtured, is not just about financial returns, but about securing a viable and thriving future for humanity on Earth. The firm’s commitment to both financial rigor and environmental stewardship positions it as a significant player in the evolving landscape of impact-driven venture capital.
