The venture capital ecosystem is undergoing a significant transformation, prompting a re-evaluation of investment strategies and core principles. In this dynamic environment, the "Meet a VC" member spotlight series offers exclusive, candid conversations with the VCs actively shaping innovation across America, delving into their unique stories, investment strategies, and forward-looking visions. This installment features a deep dive with Kevin Colas, the Managing General Partner of Snatched Ventures, providing insight into a firm positioned at the forefront of sustainable DeepTech innovation.
Snatched Ventures: A Distinctive Approach to DeepTech Investment
Snatched Ventures emerges as an institutional early-stage venture deeptech firm, currently targeting a substantial $100 million fund. Its core mission is to back the next era of sustainable operational transformation and efficiency. The firm’s differentiation lies in its strategic intersection of eight critical science-based technologies: Artificial Intelligence/Machine Learning (AI/ML), materials science, advanced manufacturing, biotechnology, optics, electronics, robotics, and blockchain. These technologies are leveraged to solve complex engineering challenges that promise large-scale environmental, economical, and social impact. Crucially, Snatched Ventures focuses on innovations that are "ready-to-deploy and scale now," rather than those requiring a decade or more for market readiness, signaling a pragmatic approach to DeepTech commercialization.
The firm’s investment thesis is further refined through six specific thematic areas where its partners possess extensive knowledge, prior successful investment experience, and a proven track record of top-decile performance since 2020. These themes are: transportation & logistics, energy & water, food & agriculture, fashion & beauty, precision medicine & aging, and retail & e-commerce. Within these sectors, Snatched Ventures seeks to create value for investors, founders, and strategic partners alike. This multi-faceted thematic focus allows for specialized expertise and network leverage, enhancing the potential for portfolio company success.
A hallmark of Snatched Ventures’ disciplined strategy is its strict financial underwriting filters, colloquially referred to as the "4Fs." These include a minimum early revenue of $1 million, a gross margin of 50%, a cash conversion score of 0.25x, and a revenue-to-capex ratio of 3x. These stringent criteria are applied to identify companies that not only offer groundbreaking technological solutions but also demonstrate robust financial health and a clear path to profitability. The firm primarily aims to lead Series A rounds, while opportunistically participating in Seed and Series B rounds, provided that minimum ownership targets and the 4Fs underwriting criteria are met. This approach underscores a commitment to investing in companies that combine environmental and financial sustainability, thereby enhancing their resilience and capacity to thrive across various economic cycles.
From Empire Angel Collective to a New DeepTech Frontier
The foundation of Snatched Ventures is built upon a compelling track record of success, primarily stemming from Kevin Colas’s prior investment platform, the Empire Angel Collective (EAC), effectively considered Fund I. Since its inception in 2020, EAC has deployed approximately $10 million across more than 40 startups, exhibiting a strong bias towards DeepTech ventures. In parallel, Alessandro, Snatched Ventures’ co-General Partner, honed his expertise by leading DeepTech investments at Hyundai’s Corporate Venture Capital (CVC) arm. This combined experience forms the bedrock of Snatched Ventures’ operational and investment philosophy.
The unified track record of Colas and Alessandro underpins Snatched Ventures’ impressive, top-decile metrics. These include a Total Value to Paid-In Capital (TVPI) of 4.4x, a Distributed to Paid-In Capital (DPI) of 151%, and an exceptionally low loss ratio of 1.6% across 24 transactions involving 22 companies. This portfolio boasts significant achievements, including five unicorn valuations, one successful exit via an Initial Public Offering (IPO), and three acquisitions, notably including one all-cash transaction. These figures not only demonstrate exceptional financial performance but also validate the investment thesis centered on early-stage DeepTech.
The Empire Angel Collective continues its investment activities, deploying new capital by vintage, with four DeepTech investments already made in 2024. Significantly, advisors to Snatched Ventures have committed to invest in Fund II, Snatched Ventures Alpha, LP, effectively serving as warehouse investments that will roll into the new fund. This continuity and commitment from established advisors signal strong confidence in the firm’s strategy and future prospects, creating a seamless transition and scaling mechanism for its investment platform.
Navigating the Evolving Venture Capital Landscape: A Call for Fundamental Principles
Kevin Colas offers a critical perspective on the contemporary venture capital landscape, particularly within California, historically the epicenter of venture investment. He posits that venture capital must revert to its "initial real DNA" – a commitment to financing innovation through a hands-on approach. This involves not merely providing capital but actively supporting portfolio companies with concrete resources, including client introductions, strategic partnerships, vetted vendors, professional services, talent acquisition from their networks, and guidance in strategy definition, refinement, planning, go-to-market rationale, and execution, all underpinned by rigorous financial discipline.
Colas reflects on the period post-pandemic, characterized by what he terms the "real 2019-2022 bubble" in the venture asset class. This era saw excessive valuations, driven by abundant liquidity, low interest rates, and an intense fear of missing out (FOMO) among investors. The consequence, he argues, was a departure from venture capital’s foundational principles, leading to a "competition of the bigger checks." This trend saw considerable fundraises by marquee funds concentrating dry powder in the hands of a few firms. While mighty in size, Colas suggests these firms often lacked the commensurate performance that once defined the industry, raising concerns about the efficiency and long-term health of the asset class.
Industry data from firms like PitchBook and NVCA reports corroborates this sentiment, showing record-breaking VC funding levels in 2021 and early 2022, followed by a sharp correction. Global VC funding peaked at over $680 billion in 2021, driven by mega-rounds and inflated valuations across all stages. However, by 2023, funding had retreated significantly, signaling a market recalibration. This shift has placed renewed emphasis on profitability, efficient capital deployment, and robust due diligence – principles that Colas advocates.
Colas emphasizes that deep due diligence is an essential fiduciary duty, particularly when investing public or institutional money. He stresses that investment managers should approach every investment as if it were their own capital, irrespective of market cycles or the pace of deal closing. The role of VC managers, he asserts, is to provide ignition capital and support companies through their growth phases until a viable exit opportunity arises. Crucially, fundraising and venture money should sustain companies on a path to profitability, not become a perpetual condition for survival. VCs, he contends, must actively push startups to build self-sustaining businesses that can quickly become profitable and operate independently, rather than perpetually consuming large amounts of public venture and growth capital until IPOs or M&A exits satisfy only early and late-stage investors. This philosophy underpins Snatched Ventures’ strict financial filters, aiming to cultivate fiscally responsible and resilient businesses.
The Strategic Imperative of DeepTech and Sustainability
The focus of Snatched Ventures on DeepTech and sustainable operational transformation is not merely an investment preference but a strategic imperative driven by global challenges. DeepTech, characterized by fundamental scientific and engineering breakthroughs, holds the key to addressing some of humanity’s most pressing issues, from climate change and resource scarcity to healthcare and industrial efficiency. Unlike incremental innovations, DeepTech often involves long development cycles and significant capital investment but promises transformative impact.
Colas’s firm targets solutions ready for deployment now, bridging the gap between cutting-edge research and commercial viability. For instance, in "energy & water," DeepTech innovations might involve advanced materials for more efficient solar panels or novel desalination technologies. In "food & agriculture," it could be precision farming robotics or biotechnology for sustainable protein alternatives. The eight technologies Snatched Ventures focuses on – AI/ML, materials science, advanced manufacturing, biotechnology, optics, electronics, robotics, and blockchain – are all foundational to creating these sustainable transformations. AI/ML, for example, can optimize supply chains (transportation & logistics) or predict crop yields (food & agriculture), leading to significant efficiency gains and reduced environmental footprints. Materials science can create lighter, stronger, and more sustainable components for advanced manufacturing, impacting everything from fashion to aerospace.
The emphasis on environmental, economical, and social impact aligns with the growing global trend of Environmental, Social, and Governance (ESG) investing. Institutional investors and limited partners (LPs) are increasingly prioritizing funds that demonstrate not only strong financial returns but also a positive societal impact. Reports from organizations like the Global Impact Investing Network (GIIN) indicate a significant increase in impact investing assets under management, showcasing a broader market demand for sustainable solutions. Snatched Ventures’ strategy to back companies that combine both environmental and financial sustainability positions it favorably within this evolving investment landscape.
Leveraging NVCA Membership for Industry Impact
Kevin Colas recognizes the tangible benefits of being an NVCA (National Venture Capital Association) member. For Snatched Ventures, membership offers crucial networking opportunities with other investor peers across various categories. This connectivity is vital for deal syndication, allowing Snatched Ventures to co-lead or participate in rounds with other reputable firms. Furthermore, it facilitates portfolio support, enabling sharing of best practices and resources among VCs, and opening doors for potential exit opportunities through broader industry connections. The NVCA also serves as a platform for thematic development, allowing members to collaborate on understanding and shaping emerging investment trends.
Beyond direct business advantages, Colas expresses a keen interest in engaging with the NVCA’s activism and policy advisory groups or think tanks. His goal is to contribute, albeit at his "humble scale," to influencing positive change and policy evolutions for the venture capital industry and, specifically, for DeepTech. This commitment to industry advocacy reflects a broader understanding that the health and growth of the venture ecosystem depend not just on individual firm strategies but also on a supportive regulatory and policy environment. By participating in these forums, Colas aims to help shape policies that foster innovation, responsible capital deployment, and long-term economic growth, particularly in areas critical for sustainable development.
Snatched Ventures’ Vision for the Future: Building a Lasting DeepTech Platform
Looking ahead, Snatched Ventures is focused on its critical fundraising target: securing $100 million, with an initial close anticipated at $30 million. Colas expresses enthusiasm for collaborating deeply with a "value-added balance" of financial, corporate, and family office strategic LPs, offering them co-investing opportunities that align with their respective strategic goals and impact objectives. This approach to LP engagement goes beyond mere capital provision, seeking genuine partnerships that can bring additional strategic value to Snatched Ventures’ portfolio companies.
The firm’s deployment strategy is equally deliberate, emphasizing wise investment through deep dives and proactive sourcing. Rather than solely relying on reactive deal flow from exchanges, conferences, accelerators, or incubators, Snatched Ventures actively maps out investment spaces within its 8 deep technologies and 6 thematic areas. This proactive stance ensures access to the most promising early-stage companies that might otherwise be overlooked, allowing the firm to identify truly transformative businesses that align with its specific investment criteria.
Ultimately, Snatched Ventures’ long-term vision extends beyond individual fund performance. Kevin Colas articulates a profound ambition: to build a lasting platform of thematic DeepTech funds. This platform aims to fundamentally change the way humanity lives and how businesses leverage innovation to boost efficiency, while simultaneously accelerating the transition towards truly sustainable models for the planet and its people. This vision is poignantly encapsulated in his closing remarks, where he states the ultimate goal is to work towards a future where there is no need to "one day flee on Mars with Mr. Musk because we ended up destroying this amazingly beautiful and well designed blue planet." This powerful metaphor underscores Snatched Ventures’ commitment to investing in solutions that safeguard Earth’s future, intertwining financial success with a deep sense of environmental and social responsibility.
In conclusion, Snatched Ventures, under the leadership of Kevin Colas, is positioning itself as a pivotal player in the DeepTech venture capital landscape. By combining a rigorous, financially disciplined investment strategy with a passionate commitment to sustainable innovation and a hands-on approach to portfolio support, the firm aims to deliver outsized returns for its LPs while contributing to a more sustainable and efficient world. Its journey from a successful angel collective to an institutional DeepTech fund reflects a deliberate evolution designed to meet the complex demands of modern innovation and the urgent need for impactful solutions.
