Zetta Venture Partners Clears Pandemic Hurdles for Biggest Fund

(Bloomberg) -- Zetta Venture Partners started fundraising for its third and largest fund before the coronavirus pandemic hit. Closing it during quarantines and stay-at-home orders was a challenge.

Silicon Valley venture capitalists often travel the world to court investors. With its $180 million fund set to close in March, Zetta -- its team and advisers working remotely -- needed to persuade would-be limited partners to sign on the dotted line for millions of dollars.

When the deal was done, they celebrated with a virtual toast on Google Hangouts.

“It was a scramble,” said Jocelyn Goldfein, managing director at the San Francisco-based firm. It was “everybody at their home office, trying to get a hold of each other,” she said.

The fund almost doubled Zetta’s assets under management. Goldfein said her team will stick with the same investment approach, business-facing startups that use artificial intelligence. They include early-stage investments across sectors, including health care, sales and security, she said.

Venture capitalists often point out that many startups form in economic downturns. Goldfein said that she started a company as the dot-com bubble burst in the early 2000s. She expects promising businesses emerge this time around, too.

“The world has more problems than ever and has a need for more solutions than ever,” she said.

Zetta previously invested in data analysis company Domo Inc., which went public in 2018. Other portfolio companies include data science platform Domino Data Lab Inc. and Tractable Ltd., which helps insurers estimate damages from car accidents and floods.

Maintaining responsible finances and keeping cash burn rates low will be particularly important for Zetta’s startups now, given the uncertainties caused by the pandemic.

“Survivability, however you can achieve it, is very very important because we just don’t know how long this is going to last,” said Ash Fontana, a managing director at Zetta.

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