Tola Capital, a Seattle, WA-based venture capital firm investing in the next generation of enterprise software enabled by artificial intelligence (AI), closed Tola Capital III, at $230m.
The fund will be deployed to seed and early-stage startups that are revolutionizing the enterprise software industry with the use of AI. The firm will use the new capital to invest in companies specializing in multiple areas of AI, including enterprise scaffolding for AI, responsible AI, AI security, app layer AI as well as others. With its third fund, the firm is aiming to invest in 25 to 30 companies globally. The average check size will range from $1m to $4m for seed stage companies and $5m to $15m for Series A and B.
Founded in 2010 and led by Sheila Gulati, managing director, Tola Capital has already deployed capital to nine companies: Arcus, Bluebean, ESG Flo, FeatureByte, Fetcher, Holistic AI, Langsafe, Lumeus, and Zilla.
The team has overseen more than a dozen exits from its portfolio companies, such as Clipchamp (acquired by Microsoft), OSIsoft (acquired by AVEVA), hybris (acquired by SAP), and has sold portfolio companies to numerous other enterprise players including Oracle, Cisco, Verizon, Mastercard, and Rapid7.
The latest fund brings Tola Capital’s total funds raised to date to $688m.
Sheila Gulati owned the enterprise IT strategy for Microsoft, launched the Microsoft Azure cloud platform, and ran the database and developer tools businesses. The Tola team is composed of former operators who built and led cloud and enterprise software businesses at Microsoft and also invested in, partnered with, or acquired dozens of now-leading enterprise software companies.