Venture capital firm started to fund Central Valley businesses

FRESNO

February 9, 2016 4:48am

•  Will specialize in technology companies based in the Valley

•  “You don't need to be in the Silicon Valley to accomplish it”

Three Fresno-based business leaders say they are starting a regional venture capital firm, San Joaquin Capital to specialize in providing local technology companies with the money needed for early stage development.

San Joaquin Capital will focus on pre-seed, seed, and Series A rounds of financing for high-growth potential, technology startups in the $100,000 to $5,000,000 range.

The new firm, which says it’s the first of its kind in the region, is led by Eric Hanson, a Fresno-based orthopedic surgeon who co-founded Sierra Pacific Orthopedic Center, along with Tim Goetz, a Fresno-based technology entrepreneur, and Randel Mathias, a Fresno-based businessman.

Mr. Hanson was a pre-seed angel investor for Aplos Software, a software as a service company founded by Mr. Goetz in 2009.

"Access to funding is a pivotal piece of the technology startup ecosystem in and around Fresno. It can transform a side project into booming business," says Mr. Goetz. "We want to do something big here by pairing our region's fantastic technology entrepreneurs with capital. We have the knowledge and experience to help them reach their goals. We want to take part in the movement and fuel the technology sector of the Central Valley."

San Joaquin Capital's first fund is the Whitney Fund, a $4 million Series A Fund with Aplos Software as the sole recipient. The VC firm only recruited investors that are based in California's Central Valley and successfully funded the $4 million in less than three months.

Aplos sells cloud-based accounting software designed specifically for small nonprofits. The addition of funds from San Joaquin Capital will allow Aplos to accelerate and expand its product development efforts, the company says.

"When I founded Aplos, it was with the goal of providing technology that was easy to use that would help nonprofit leaders operate more efficiently and more successfully," says Mr. Goetz.

"Aplos is a prime example of what can happen when an entrepreneur receives the backing it needs -- and you don't need to be in the Silicon Valley to accomplish it," says Mr. Hanson. "Aplos is just the start. There are many young entrepreneurs with terrific ideas, and some serious talent in the Central Valley. We hope to connect them to financial resources so their startups can gain traction."

The Whitney Fund is fully funded and closed to new investors, but San Joaquin Capital is preparing for its second fund and actively seeking investment partners and proposals from entrepreneurs that are based in Fresno or the surrounding area.

http://www.centralvalleybusinesstimes.com/stories/001/?ID=29943