The firm's investment strategy focuses on the "enterprise scaffolding" of AI, including responsible AI, AI security, and app layer AI. Tola Capital's previous two funds have resulted in over a dozen exits, including companies like Clipchamp, OSIsoft, and Hybris. The firm is particularly interested in investing in companies with "real invention," which Gulati describes as having the right team, the invention, the total addressable market, and the culture to attract talent.
Key takeaways:
- Tola Capital has secured $230 million in capital commitments for its third fund, marking its largest fundraising round to date. The firm invests in AI-enabled enterprise software.
- Despite a challenging fundraising environment over the past year, the firm's co-founder and managing director, Sheila Gulati, believes the interest in artificial intelligence made it a good time to raise a new fund.
- With the new fund, Tola Capital has raised a total of $688 million to date. The firm invests at the seed and early-stage levels in startups innovating the enterprise software industry with the use of AI.
- Tola Capital III will invest in between 25 and 30 companies globally, with check sizes ranging from $1 million to $4 million for seed-stage companies and $5 million to $15 million for Series A and B. The firm has already invested in eight companies.