US-based venture capital firm Union Labs has raised $29m for its inaugural fund, from investors including GV, a corporate venturing subsidiary of internet and technology group Alphabet, TechCrunch has reported.
The firm is seeking $50m for the fund’s final close and has secured undisclosed corporates from the telecommunications, utilities, consumer electronics and insurance sectors as limited partners, in addition to VC firm Kleiner Perkins.
Union Labs is pitched as a hybrid corporate-traditional venture capital firm and it will provide pre-seed and seed funding for hardware-focused, deep tech startups. It is looking to invest in 15 companies directly and incubate another three to five internally.
Cheque sizes will range from $500,000 to $1.5m, averaging out at $890,000 for stake around the 11% mark, Union Labs co-founder and managing partner Nate Williams told TechCrunch
Union Labs’ four-company portfolio so far includes car rental optimisation service Carnect, home safety tools producer Enricle Labs and Strella Biotechnology, the creator of a sensor that assesses the freshness of fruit and vegetables.