Tacora Capital, a Texas-based firm focused on venture debt, has secured $268.7 million for its second fund, as revealed in a recent SEC filing.
The firm’s first fund, launched in 2022, raised approximately $350 million, including a notable $250 million contribution from prominent Republican billionaire and investor Peter Thiel. This was an exceptionally large investment by Thiel at the time.
Venture debt firms provide loans to startups and other companies rather than acquiring equity, as traditional venture capitalists do. This financing option appeals to founders seeking funding without reducing their ownership stakes. Tacora offers loans to businesses with significant capital requirements, such as fintech and hardware companies.
The risk with venture debt, of course, is that startups—which often burn cash—aren’t able to pay their loans back. According to a press release for its first fund, Tacora only backs loans against “specific, strong assets owned by well-positioned companies.”
Tacora’s founder and CEO, Keri Findley, declined to comment on whether Thiel invested.
With its specialized approach to funding capital-intensive businesses and its latest $268.7 million fund, Tacora Capital is well-positioned to support the growth of startups in fintech, hardware, and other demanding sectors. By offering a non-dilutive financing option, the firm continues to attract founders looking to scale their ventures while retaining ownership, cementing its role as a key player in the venture debt landscape.
