The venture capital landscape is currently experiencing a profound recalibration, a period characterized by a renewed emphasis on fundamental value creation, rigorous due diligence, and sustainable growth pathways. In this evolving environment, firms like Snatched Ventures are distinguishing themselves through a targeted approach to deeptech investment, aiming to fuel innovation that addresses complex engineering challenges with significant environmental, economic, and social impact. At the forefront of this initiative is Kevin Colas, Managing General Partner of Snatched Ventures, whose insights were recently shared as part of a member spotlight series, offering a candid look into the firm’s strategies and vision for the future of venture capital.
Snatched Ventures positions itself as an institutional early venture deeptech firm, currently targeting a $100 million fund. The core mission is to back companies poised to drive the next era of sustainable operational transformation and efficiency. This objective is pursued at the intersection of eight specific, science-based technologies: Artificial Intelligence/Machine Learning (AI/ML), materials science, advanced manufacturing, biotechnology, optics, electronics, robotics, and blockchain. These technologies are not merely abstract concepts for future deployment; Snatched Ventures specifically seeks solutions that are "ready-to-deploy and scale now," a crucial distinction in the often long-horizon world of deeptech.
The firm’s investment strategy is further refined by focusing on six key thematic areas where Colas and his team possess deep expertise and a proven track record of successful investments. These themes include transportation & logistics, energy & water, food & agriculture, fashion & beauty, precision medicine & aging, and retail & e-commerce. Within these sectors, Snatched Ventures targets companies solving complex engineering problems that promise large-scale positive impacts. This targeted approach aims to generate value for investors, founders, and strategic partners alike, by identifying innovations that are not only technologically advanced but also commercially viable and poised for rapid market adoption.
A hallmark of Snatched Ventures’ disciplined approach is its strict underwriting financial filters, famously dubbed the "4Fs." These criteria demand 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. Such rigorous financial benchmarks are applied to lead Series A rounds, with opportunistic investments in Series Seed and B when minimum ownership and the 4Fs are met. This disciplined financial framework ensures that Snatched Ventures supports companies that combine environmental and financial sustainability, positioning them to thrive across diverse economic cycles rather than relying solely on continuous capital injections.
The Evolution and Proven Track Record of Snatched Ventures
The foundation of Snatched Ventures is deeply rooted in the prior investment platforms of its leadership. Kevin Colas initially founded the Empire Angel Collective (EAC), which effectively served as "Fund I." Since 2020, EAC has strategically deployed approximately $10 million across more than 40 startups, demonstrating a strong emphasis on deeptech solutions. In parallel, Alessandro, Snatched Ventures’ co-General Partner, honed his expertise by leading deeptech investments at Hyundai’s Corporate Venture Capital (CVC) arm. This dual experience has converged to underpin Snatched Ventures’ impressive, top-decile metrics. The combined track record boasts 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 has yielded significant successes, including five unicorns, one IPO exit, and three acquisitions, notably one all-cash transaction.
This chronological development highlights a deliberate progression from angel investing to a more institutionalized venture capital model. The EAC continues to make new investments by vintage, with four in 2024 exclusively in deeptech, serving as warehouse investments to be rolled into Snatched Ventures Alpha, LP, which will be Fund II. This strategy provides a continuous pipeline of vetted opportunities and demonstrates ongoing market engagement and deal sourcing prowess.
Navigating the Contemporary Venture Capital Landscape
Kevin Colas offered a critical perspective on the current state of the venture capital industry, particularly in regions like California, traditionally the epicenter of venture investment. He contends that venture capital needs to return to its "initial real DNA," which he defines as financing innovation with a hands-on approach. This involves concrete support for portfolio companies beyond mere capital, extending to bringing clients, strategic partners, vetted vendors, and professional services, as well as leveraging networks for new hires, aiding in strategy definition, refinement, and planning, and assisting with go-to-market (GTM) rationale and execution, alongside fostering financial discipline.
Colas observed that the industry, especially after the global pandemic and the period of "excessive valuations" from 2019-2022, had drifted from these foundational principles. He described this era as a "bubble" characterized by a competition for "bigger checks," driven by considerable fundraises from marquee funds. This has led to a concentration of dry powder in the hands of a few large firms, whose performance, in his view, has not always matched their size.
He emphasized that deep due diligence is paramount for the proper deployment of public money, underscoring the fiduciary duty of investment managers. This duty, he argued, must remain unwavering regardless of market cycles, fear of missing out (FOMO), or the pace of deal closing. Colas believes that investment managers should treat Assets Under Management (AUM) as if it were their own money. The role of VCs, he asserts, is to provide ignition capital and support companies through both difficult times and growth phases until an exit opportunity arises. Crucially, fundraising and venture money should sustain companies on a clear path to profitability, not become a condition of their survival. VCs, in this paradigm, should push startups to build self-sustaining, quickly profitable businesses capable of independent operation, rather than consuming large amounts of venture and growth capital until an IPO or M&A exit. This philosophy directly informs Snatched Ventures’ stringent financial filters and hands-on operational support model.
The Strategic Imperative of Deeptech and Sustainability
The focus on deeptech, particularly solutions "ready-to-deploy and scale now," aligns with a broader industry trend recognizing the urgent need for technological innovation to address pressing global challenges. Deeptech, encompassing breakthroughs in science and engineering, is increasingly seen as critical for sustainable development. According to various industry reports, investment in deeptech has surged globally, driven by advancements in AI, biotech, and advanced materials, coupled with a heightened awareness of climate change and resource scarcity. However, deeptech often faces challenges such as longer R&D cycles and higher capital intensity compared to conventional software startups. Snatched Ventures mitigates these risks by targeting solutions that are closer to market readiness, ensuring a faster path to commercialization and impact.
The integration of environmental and financial sustainability is not merely an ethical stance but a strategic imperative for Snatched Ventures. By backing companies that inherently combine these two aspects, the firm aims to build a portfolio resilient to economic fluctuations and aligned with global shifts towards a greener, more efficient economy. This approach resonates with the growing demand from limited partners (LPs) for investments that deliver both competitive financial returns and positive societal impact.
Engagement with the National Venture Capital Association (NVCA)
Kevin Colas underscored the multifaceted benefits of NVCA membership for Snatched Ventures. Beyond networking opportunities, which facilitate deal syndication, co-leading investments, and identifying exit opportunities, NVCA provides a platform for thematic development and portfolio support. Colas expressed a keen interest in engaging with NVCA’s activism and policy advisory groups or think tanks. His objective is to contribute, even at a "humble scale," to influencing positive change and policy evolutions within the venture and deeptech sectors.
The NVCA plays a crucial role as the voice of the U.S. venture capital industry, advocating for policies that foster innovation, economic growth, and job creation. By participating in NVCA, firms like Snatched Ventures gain insights into legislative and regulatory developments, contribute to shaping the future of venture capital, and collaborate with peers on industry best practices. This engagement is vital for a firm committed to long-term impact and systemic change within the innovation ecosystem.
The Path Ahead for Snatched Ventures
Looking forward, Snatched Ventures is focused on successfully fundraising its $100 million target, with an initial close anticipated at $30 million. Colas is particularly enthusiastic about building a value-added balance of financial, corporate, and family office strategic LPs, emphasizing deep collaboration and offering co-investing opportunities. This diversified LP base is designed to bring not only capital but also strategic insights and networks to the firm’s portfolio companies.
The firm’s deployment strategy will continue to prioritize deep dives, proactively sourcing opportunities rather than relying solely on reactive deal flow from exchanges, conferences, or accelerators and incubators. This proactive approach aims to identify the best early-stage companies at the intersection of their eight deep technologies and six thematic areas, for which investment spaces have already been meticulously mapped.
Ultimately, Snatched Ventures aims to build a lasting platform of thematic deeptech funds. This vision extends beyond mere financial returns; it is about "changing the way we live and business use innovation to boost their efficiency while transitioning faster towards really sustainable models for the planet and people." Colas articulated this commitment with a poignant reflection on the imperative to protect Earth for future generations, contrasting it with dystopian visions of abandoning the planet. By investing in teams and businesses that demonstrate both positive environmental and financial sustainability, Snatched Ventures seeks to produce outsized returns for its LPs, founders, strategics, GPs, and staff, while contributing to a more sustainable future for the world. This holistic approach positions Snatched Ventures not just as a financial investor but as a catalyst for meaningful, planet-positive innovation.
