Early Stage Venture Capital Fund Good Growth Capital Announces Five New Investments
Funding is down across venture capital, but from Good Growth Capital’s perspective, there’s rarely been a better time to invest in transformative technologies
CHARLESTON, SC and BOSTON, MA, September 10, 2020 -- While many venture capital funds have paused or slowed their investments during the Covid-19 crisis, Good Growth Capital is today announcing five new investments made in just the last few weeks. Another seven are anticipated as the fund heads into the fall.
“While our existing portfolio is performing extremely well, we are seeing top-notch new investment opportunities and are capitalizing on them,” says Managing Partner Amy Salzhauer. “We invest primarily in sectors that are performing well despite the pandemic, including health tech, data sciences, sustainability and green tech. Our investment thesis and focus are well-positioned for a turbulent market.”
Good Growth Capital is known for its expertise in technology commercialization and its ability to identify and evaluate opportunities much earlier than most other funds. Managing Partner Maureen Stancik Boyce, PhD, says that despite their early stage focus, the Good Growth Capital team are fundamentally value investors. “One of our criteria for investment is that companies need to be able to perform well in any market,” says Stancik Boyce. “That criteria has served our portfolio well in recent months, with companies like SkyHawk Therapeutics, [which develops cell membrane-crossing small molecules used for the delivery of drugs and vaccines], and at-home lung health monitoring company Aluna growing rapidly through the increasing demand for innovative healthtech.”
Good Growth Capital’s most recent investments include three new companies and two follow-on rounds. The fund is deepening its involvement in the field of home-based diagnostics and monitoring, where growth has been accelerated by telemedicine and new social distancing norms, with first investments in Massachusetts-based Encora and LuminDx. Both are spinouts from the Massachusetts Institute of Technology. Encora provides affordable, personalized, non-invasive remedies for patients with neurological movement disorders, while LuminDx helps improve the rate of accurate diagnosis in dermatology through home-based diagnostics and monitoring using smart phone apps. Good Growth Capital is also making a first investment in Trillbit, which is pioneering the Internet of Sound with its contactless ultrasonic authentication protocol. This enables any device with a speaker to communicate with any device with a receiver by removing the need for compatible standards.
Carolyne LaSala, Good Growth Capital Managing Partner, followed Trillbit for a year before investing last month. An experienced entrepreneur and Apple veteran herself, LaSala was excited when first introduced to the company, but she knew that they were not yet ready for an investment. “We often mentor and watch companies for a significant length of time before we invest,” LaSala says. “We saw Trillbit more than a year ago and thought the technology was impressive, but at that time, we didn’t think they had the right target markets; now they do. They’ve secured several pilots with Fortune 100 and 500 manufacturers in the internet of things space, which led to our investment this August.”
In the case of Encora, Good Growth Capital’s network of partners and advisors proved particularly helpful in analyzing the company’s technology and its competition. “Good Growth Capital has a phenomenal group of Venture Partners and Advisors,” notes David Mendez, another of the fund’s five Managing Partners. “Our entire biomedical deal team was involved in this decision, especially Dr. Catherine Mohr, Dr. Larry Olanoff and Patrick Rivelli. We are so excited to invest in this technology - which has the potential to return dexterity required for daily tasks to the hands of millions of people diagnosed with essential tremor and Parkinson’s Disease.”
Good Growth Capital is also contributing to follow-on rounds for two of its existing portfolio companies, Obsidio and Radical Plastics. Obsidio has developed proprietary occlusive embolization technology (which involves safely blocking blood vessels) to stop internal bleeding. Radical Plastics develops catalysts to convert plastic films to self-biodegrading materials, converting what would become a stream of plastic waste to fertilizer. Good Growth Capital led previous rounds for both companies and has provided significant mentorship as well. For example, Stancik Boyce serves on the board of Radical Plastics and has worked with several Good Growth Capital partners to mentor the company’s founders since Good Growth’s initial investment in August, 2019. Managing Partner John Osborne notes that “Our investment in Radical Plastics demonstrates how our managing partners leverage each other’s skill sets to support portfolio companies, from board service to round structuring to industry introductions. This round of financing for Radical Plastics should get them through a critical phase on the road to commercialization with lab and field validation of complete biodegradation. It should create a lot of value for all stakeholders, from investors to environmentalists.”
According to Pitchbook data, venture capital deal value this year is running at its lowest level since 2012, and some of the largest venture firms have only done half as many deals to-date as they did last year. Even within a global pandemic, Good Growth Capital continues to leverage its network to find high-quality investments.
About Good Growth Capital
Good Growth Capital (GGC) is an early stage venture capital firm known for its exceptional expertise in finding, cultivating and assessing complex science and technology start-ups. Formed by a team of experienced operators, our strong capacity for understanding early stage science and technology investments enables us to invest well at an earlier stage than most venture capital firms, giving us priority access to high-performing investment opportunities. We invest in seed stage and Series A deals through our General Fund family and in pre-seed and seed stage companies through our Infinite Corridor Fund, which primarily targets MIT-affiliated and transformative science start-ups. GGC is majority women and minority-owned and is uniquely positioned geographically in both the Southeast and New England. For more information, visit goodgrowthvc.com.