US-Based Venture Tacora Capital Raises $268.7 Million for Its Second Fund

In a recent filing with the SEC, Texas-based venture debt firm Tacora Capital has disclosed that it raised USD 268.7 million for its second fund. This figure comes after the company's initial round in 2022, which reached nearly USD 350 million. According to earlier reports by Bloomberg, the first fund included a contribution of USD 250 million from Peter Thiel, described at the time as an "unusually large investment" for the billionaire known for his support of conservative causes. Yet, whether Thiel has participated in this new fund remains unknown, as the filing only notes 28 unnamed investors. Representatives for the entrepreneur have so far not responded, and Keri Findley, the CEO and founder of Tacora Capital, has chosen not to comment on Thiel's involvement.

Launched in 2021, Tacora Capital is headquartered in Austin, where it focuses on providing venture debt—essentially loans to startups that prefer to avoid equity dilution. In the landscape of risk capital, this financing model can be appealing to founders who need capital infusions without relinquishing larger ownership stakes. The downside, however, is that cash-strapped startups may find it challenging to repay loans if revenue flows fail to materialize as projected. Acknowledging these risks, Tacora Capital states that it bases its decisions on “specific, strong assets owned by well-positioned companies,” thereby indicating a measured, asset-backed approach to financing.

According to Findley, the rationale behind launching a second fund arises from the track record of the inaugural vehicle and ongoing demand for “flexible, non-leveraged” financial solutions. She notes that companies with capital-intensive operations—ranging from hardware to fintech—often prefer venture debt for its ability to provide a lifeline without forcing them to dilute shareholder equity. It is worth remembering that the firm’s first fund was largely directed at similar types of businesses with cost-intensive growth needs, although Tacora Capital has not offered examples of specific portfolio companies that benefited from this strategy.

Notably, Findley’s professional background includes a tenure as a partner at Third Point, during which time she was introduced to Peter Thiel via his investment entity, Thiel Capital. The level of Thiel’s continued involvement, however, remains in question, with Tacora Capital declining to reveal whether the billionaire is among the 28 investors in this new fund. For many observers, the mystery around his role is heightened by the unusual scale of his previous stake.

The use of venture debt, as practiced by Tacora Capital, has been gaining traction in various technology markets where startups aim to secure liquidity but remain cautious about reducing their equity. Yet it is not without challenges; high-growth startups often burn through cash quickly, making it critical for debt-focused firms to thoroughly evaluate the probability of timely repayments. Borrowers that rely heavily on pipeline expansions or hardware deployments can face sudden shifts in market demand, potentially jeopardizing their ability to meet repayment schedules.

Against this backdrop, Tacora Capital underscores its asset-centric stance. The reference to “specific, strong assets owned by well-positioned companies” suggests a rigorous selection process wherein ventures are scrutinized for tangible or otherwise valuable collateral. By embracing this secured approach, the firm aims to mitigate the inherent risks associated with loaning funds to emerging ventures that do not fit the traditional risk profile for bank loans.

Looking ahead, industry analysts are watching how Tacora Capital will allocate its new pool of resources, especially given the evolving market pressures on startups and the persistent interest in alternative funding streams. Many founders seeking growth capital continue to weigh the pros and cons of equity versus debt financing, with some recognizing that venture debt can provide operational runway during volatile market conditions. This second fund of USD 268.7 million may reveal whether Tacora Capital—and by extension, Keri Findley—can replicate or surpass the previous fund's impact. As more companies look for ways to secure funding without surrendering substantial ownership, the venture debt model could hold a significant place in the broader startup ecosystem, leaving Tacora Capital at an intriguing juncture in its development.