GOOD GROWTH CAPITAL
SUCCESS STORY
GENERATING AWARENESS AT SCALE AND ACROSS GEOGRAPHIES
Even though Amy knows him quite well from their time back at business school, he would never have known about us if it wasn't for Palico, because he's based in Europe. It was a total coincidence
GOOD GROWTH, GREAT OPPORTUNITY
There’s often a serendipity to private capital fundraising. When Good Growth Capital (GGC) chose to list its sophomore flagship fund on Palico’s global marketplace it resulted in a chance reunion. GGC’s unique strategy caught the eye of one investor who requested access to the data room in early March and, having scoped out the fundraising documents in the secure data room, made contact in mid-April. That LP happened to be a former classmate of managing partner Amy Salzhauer. Despite the fortuitous connection, that investor was neither aware of GGC nor that Amy was leading a mold-breaking VC firm based in Boston and Charleston, South Carolina.
After a number of phone calls and enquiries regarding the firm’s strategy and Limited Partner Advisory Committee (LPAC), including an offer to join the LPAC, this investor went on to subscribe to the fund in June.
“Even though Amy knows him quite well from their time back at business school, he would never have known about us if it wasn’t for Palico, because he’s based in Europe. It was a total coincidence.” says Maureen Stancik Boyce, one of the firm’s five managing partners.
Not only has Palico featured Good Growth Capital Fund II in its marketplace, matching the opportunity with relevant LPs seeking new VC fund opportunities, it has also helped the firm to tell its story. For instance a Q&A was hosted to shine a spotlight on portfolio company Skyhawk Therapeutics, a health tech start-up developing RNA-based treatments and one of the firm’s proudest ongoing successes. Skyhawk continues to go from strength to strength, having signed a partnership with Vertex Pharmaceuticals at the end of 2020 that has seen the company secure $40m upfront and up to $2.2bn more in milestones and royalties on product sales.
STRATEGIC DIFFERENTIATION
Other LP leads have come from the Palico listing but at the time of writing have not yet converted into commitments. That could soon change. GGC’s strategy is nothing if not compelling. As an early-stage VC firm investing in complex science and technology start-ups it is benefitting from the secular tech and health investment themes that have gained momentum since the pandemic.
Specifically, its General Fund family invests in seed stage and Series A deals, while its Infinite Corridor Fund focuses on pre-seed and seed stage companies, primarily targeting MIT-affiliated and transformative science start-ups.
More than that, the firm is leading by example. As private equity and venture capital firms attempt to close a lingering diversity gap within their industries, GGC is the tip of the spear. The firm is majority women- and minority-owned, giving the team a unique market perspective, a fact that is resonating with investors.
As a smaller firm (it is currently raising a $100m fund), its offering suits smaller investors. “Family offices are a really nice target for us more so than the big institutions or big pension funds, because of our size” says Maureen, noting that its doors are nonetheless open to all LP types. “We’re happy to talk to anybody who’s really, really thoughtful about investing.”
GOING DIGITAL
VC firms are known trailblazers, often being the first to venture into uncharted waters by backing cutting-edge technologies and business concepts. For GGC, the idea of using digital tools to raise capital was a familiar one even before it reached out to Palico. The firm counts within its portfolio Republic, a crowdfunding platform that curates private investing opportunities with high-growth potential across startups, gaming, real estate and crypto. Republic has found great success and has helped investors access the likes of Elon Musk’s space exploration business SpaceX and Robinhood, one of America’s most ubiquitous trading apps. GGC itself has sourced deal opportunities itself using such platforms.
But using Palico was a totally unique experience. “As a team we have lot of experience with digital platforms for fundraising for companies,” says Maureen. “But not for us as a company to fundraise for ourselves. Palico is certainly the first one.” We hope to welcome the team again when it’s time for GGC Fund III.