NEW YORK – Orbit Capital Corp. is raising its inaugural corporate venture fund, Orbit Capital Venture Fund I, targeted at $40 million to $50 million.
The company, which began fund raising in October, expects to have a first close in January or February, and a final close shortly thereafter, said James Nelson, the company’s chairman and chief executive.
The company plans to invest in 10-15 early-stage and incubation companies, with typical investments ranging between $500,000 and $4 million over several rounds of financing. The fund will have a global focus, as the company already has had high levels of interest from investors in Europe, Hong Kong and the United States, Nelson said.
At press time, Orbit Capital already invested in three companies and is incubating three additional companies. The undisclosed sum of capital used to fund these deals came from the firm’s two principals.
The company put together a team of people who will be responsible for lending strategic assistance to portfolio companies, and it also will provide its portfolio companies with incubation resources including office space, communications services, strategic planning, operational technology, marketing services and assistance with IPO planning and execution.
Orbit Capital’s limited partners will include a combination of large institutional investors and high-net-worth individuals. The company’s three managing directors are John Geisler, Jay Elliott and Steven Testa.
Orbit Capital has a common ownership affiliation with, but is not owned by, the Orbitex Group of Companies, an international investment adviser.