Tacora Capital Raises $270 Million for Second Debt Fund
Austin, Texas-based Tacora Capital recently filed with the SEC announcing that they have raised nearly $269 million for their second fund. This venture debt firm, known for providing venture debt to VC-backed startups, saw great success with their inaugural fund, heavily backed by Peter Thiel back in 2022. Thiel praised Tacora’s ability to understand the unique financial needs of startups and expressed excitement to be their first investor.
Venture debt is a financing option often utilized by startups in conjunction with equity funding. Unlike traditional debt, venture debt is less structured and comes with fewer financial covenants. It is typically used for growth-related expenses and is lent based on the startup’s investors and stage of growth. Some of the companies that have benefited from Tacora’s venture debt include FlexPoint, Exectras, and StayTuned.
As for Thiel, reports suggest that his firm, Founders Fund, is in discussions to raise around $3 billion for a new growth-stage focused fund. This comes after a busy year for the firm in 2024, where they made notable investments in companies like fintech startup Ramp, defense startup Anduril Industries, and AI and data platform Databricks.
While it remains uncertain whether Thiel will participate in Tacora’s new fund, it’s evident that both the company and its backers are experiencing a period of growth and activity. The intersection of venture debt and startup finance continues to be a dynamic space to watch.
