Chrysalis Ventures has closed its fourth fund with $175 million in capital commitments. New limited partners include Morgan Stanley, Credit Suisse, the Kentucky Teachers’ Retirement System and Health Evolution Partners. The Louisville, Ky.-based firm focuses on early-stage companies in the Midwest and South.
Chrysalis Ventures, a leading source of equity capital for young growth companies in the Midwest and South, today announced the revised final closing of its fourth investment fund with commitments now totaling $175 million. The firm, which invests primarily in healthcare services and technology, media and communications, and emerging trends and technologies, announced in February 2008 that it had raised $163 million and exceeded its $150 million target for the fund.
Chrysalis Ventures’ fourth fund attracted commitments from a variety of institutions and high net worth individuals, many of whom have been serial investors in Chrysalis’ prior funds. The firm also welcomed such new limited partners as Morgan Stanley, Credit Suisse, and the Kentucky Teachers’ Retirement System. The most recent addition was Health Evolution Partners, a manager of healthcare investment funds.
The fund is managed by three managing directors who have been investing together at Chrysalis Ventures for more than 10 years — David A. Jones, Jr., Koleman E. Karleski, and Robert S. Saunders. The managing directors and their affiliates, together with the professional staff of Chrysalis Ventures, are collectively the second-largest investor in the new fund. In addition, nine of the firm’s former portfolio company executives invested in the latest fund.
“Chrysalis has unique strategies and deep experience,” said David J. Brailer, MD, PhD, chairman of Health Evolution Partners. “The firm extends our ability to invest in and support companies that can transform healthcare and benefit from this change.” Roy Ziegler, director of Health Evolution Partners Innovation Network, added, “We look forward to working with their exceptional management team to bring breakthrough solutions from concept to widespread national use.”
“Chrysalis has a proven history of identifying and investing in the best young companies in Mid- America, an area historically overlooked by the financial community and therefore ‘under-ventured,’” said David A. Jones, Jr., Chrysalis Ventures chairman and managing director. “We look forward to investing this new fund behind our focused investment strategy and developing further our geographic franchise.”
Chrysalis Ventures has made investments in over 55 companies, including five through its most recent fund: Chronicity, Inc., Continuum 700 LLC, Digitalsmiths Corporation, Mobile Armor, Inc., and SinglePipe Communications. This fourth fund expects to invest in up to 20 additional companies over the next three years.
Founded in 1993, Chrysalis Ventures has 14 investment and professional staff.
About Chrysalis Ventures
Founded in 1993, Chrysalis Ventures is the premier venture capital firm in Mid-America, managing one of the region’s largest funds for early-stage and growth investments. Chrysalis invests primarily in early-stage and expansion-stage companies in healthcare services and technology, media and communications, and emerging trends and technologies. Based in Louisville, Kentucky, Chrysalis has over $385 million under management and has made investments in over 55 companies. For more information, please visit www.chrysalisventures.com.