Snatched Ventures, an institutional early-stage deeptech firm, is poised to make a significant impact on the venture capital landscape, targeting a $100 million fund to champion the next generation of sustainable operational transformation and efficiency. Led by Managing General Partner Kevin Colas, the firm distinguishes itself through a unique investment strategy, stringent financial underwriting, and a hands-on approach designed to foster companies that combine environmental and financial sustainability, capable of thriving across diverse economic cycles. This initiative comes as part of the "Meet a VC" member spotlight series, offering an exclusive look into the strategies and vision of VCs driving innovation across America.
The Genesis of Snatched Ventures: A Track Record of Success
The foundation of Snatched Ventures is firmly rooted in the prior investment successes of its leadership. Kevin Colas initially established the Empire Angel Collective (EAC), effectively considered Fund I, which has deployed approximately $10 million across more than 40 startups since 2020, demonstrating a strong emphasis on DeepTech. Concurrently, co-GP Alessandro, while collaborating with Colas, spearheaded Deeptech investments for Hyundai’s corporate venture capital arm, gaining invaluable experience in strategic innovation. This combined expertise underpins Snatched Ventures’ remarkable track record, boasting top-decile metrics that include a 4.4x Total Value to Paid-in Capital (TVPI), 151% Distributed to Paid-in Capital (DPI), and an exceptionally low 1.6% loss ratio across 24 transactions involving 22 companies. This portfolio includes five unicorns, one successful IPO exit, and three strategic acquisitions, one of which was an all-cash transaction.
The Empire Angel Collective continues to deploy new investments, with four deeptech-focused ventures in 2024, serving as warehouse investments to be rolled into Snatched Ventures Alpha, LP, which represents Fund II. This strategic alignment ensures a continuous pipeline of rigorously vetted deeptech opportunities and leverages the established network and advisory board of EAC, who are already committed to supporting Fund II.
A Distinctive Investment Thesis: Deeptech for Immediate Impact
Snatched Ventures’ investment philosophy centers on the intersection of eight critical science-based technologies and six strategically chosen thematic areas. The firm seeks to address complex engineering challenges that promise substantial environmental, economic, and social impact, but with a crucial caveat: the technologies must be "ready-to-deploy and scale now, not in ten years." This pragmatic approach differentiates Snatched Ventures from many traditional deeptech investors who often tolerate longer commercialization timelines.
The eight core technologies include Artificial Intelligence/Machine Learning (AI/ML), materials science, advanced manufacturing, biotechnology, optics, electronics, robotics, and blockchain. These technologies are applied across six thematic areas where the Snatched Ventures team possesses deep knowledge, prior investment success, and a proven ability to generate top-decile performance: transportation & logistics, energy & water, food & agriculture, fashion & beauty, precision medicine & aging, and retail & e-commerce. This focus allows the firm to bring significant value to investors, founders, and strategic partners alike, by concentrating on sectors ripe for disruption through sustainable innovation.
Rigorous Financial Underwriting: The 4Fs Framework
A cornerstone of Snatched Ventures’ differentiated strategy is its strict adherence to a proprietary "4Fs" underwriting financial filter. This framework mandates minimum early revenue of $1 million, a gross margin of at least 50%, a cash conversion score of 0.25x, and a revenue-to-capital expenditure (CapEx) ratio of 3x. These stringent criteria are applied to lead Series A rounds, with opportunistic investments in Seed and Series B stages when minimum ownership targets and the 4Fs are met.
This rigorous financial discipline is designed to identify companies that are not only technologically advanced but also possess inherent financial sustainability and scalability. In an era where venture funding has often prioritized growth at any cost, Snatched Ventures emphasizes building businesses capable of generating profit and positive cash flow early in their lifecycle. This approach aims to cultivate companies resilient enough to thrive through economic downturns and market volatility, ultimately delivering superior returns for Limited Partners (LPs).
Navigating the Evolving Venture Capital Landscape
Kevin Colas offers a candid assessment of the current venture capital landscape, particularly in California, historically the epicenter of innovation funding. He argues that venture capital needs to return to its fundamental "DNA": financing innovation with a hands-on, supportive approach. This includes not just providing capital but actively assisting portfolio companies with client acquisition, strategic partnerships, vetted vendors, professional services, new hires from their networks, strategy definition, go-to-market execution, and financial discipline.
Colas notes that the industry has veered away from these roots, especially after the "terrible global pandemic" and the "excessive valuations of the real 2019-2022 bubble." He observes a trend towards a "competition of the bigger checks," driven by substantial fundraises by marquee funds over the past 5-10 years. While these firms are mighty in size, Colas suggests their performance has not always kept pace, implying a disconnect between dry powder and effective capital deployment.
This perspective resonates with broader industry trends. According to recent reports from PitchBook and NVCA, venture funding in Q1 2024 continued to slow globally, with deal value decreasing by approximately 20% compared to the previous quarter. There’s an increasing emphasis on profitability and efficient capital utilization, a stark contrast to the growth-at-all-costs mentality prevalent during the 2021-2022 peak. Many investors are now prioritizing proven business models and clear paths to positive cash flow, validating Colas’s call for a return to financial prudence.
Colas stresses the fiduciary duty of investment managers to conduct deep due diligence, investing "public money properly" as if it were their own. He criticizes the "fear of missing out" (FOMO) that often dictates the pace of deal closing, leading to rushed decisions. He asserts that VCs should provide "ignition capital" and support companies through growth phases until a viable exit, but critically, fundraising and venture money should sustain companies on a "path to profitability," not become a condition of their survival. The goal, he contends, should be to empower startups to build self-sustaining businesses that can "fly with their own wings," rather than continuously consuming large amounts of public venture and growth capital until an IPO or M&A exit.
The Value of NVCA Membership and Industry Advocacy
For Kevin Colas, membership in the National Venture Capital Association (NVCA) offers multifaceted benefits crucial for Snatched Ventures’ growth and impact. He highlights the opportunity to connect with more investor peers for deal syndication, co-leading investments, and enhancing portfolio support. Such connections are vital for a firm like Snatched, which seeks to lead Series A rounds and may look for strategic co-investors for larger rounds or specialized expertise. Furthermore, NVCA provides avenues for identifying exit opportunities and fostering thematic development within the deeptech ecosystem.
Beyond direct business advantages, Colas expresses a strong desire to engage in NVCA’s activism and policy advisory groups. His aim is to contribute, even at a "humble scale," to influencing positive change and policy evolutions for the broader venture and deeptech sectors. This commitment underscores the understanding that deeptech innovation often requires supportive regulatory environments, government funding initiatives, and public-private partnerships to truly flourish. Advocacy through organizations like NVCA can help shape policies that de-risk nascent technologies, incentivize sustainable practices, and accelerate the adoption of critical innovations.
A Future Focused on Sustainable Impact and Lasting Legacy
Looking ahead, Snatched Ventures is actively fundraising for its $100 million target, with an initial close anticipated at $30 million. Colas envisions a balanced LP base comprising financial institutions, corporate partners, family offices, and strategic LPs, with whom he is eager to collaborate deeply and offer co-investing opportunities. This strategic mix of LPs not only provides capital but also brings invaluable strategic insights and potential partnerships for portfolio companies.
The firm is committed to a proactive, rather than reactive, sourcing strategy. Instead of relying solely on deal flow exchanges, conferences, accelerators, or incubators, Snatched Ventures plans to conduct "deep dives" to proactively identify the most promising early-stage companies at the intersection of its eight deep technologies and six thematics. This rigorous, research-driven approach is designed to uncover hidden gems and secure the best investment opportunities.
Ultimately, Snatched Ventures’ long-term vision extends beyond financial returns. Colas articulates a profound ambition to build 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 simultaneously accelerating the transition towards truly sustainable models for the planet and its people. His concluding remarks emphasize this broader philosophical commitment: to secure a future where humanity avoids "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 Snatched Ventures’ dual mission: to deliver exceptional financial performance while driving transformative, environmentally conscious innovation for generations to come.
