Venture capital firms have increasingly moved to industry or niche-specific investing patterns.
But a new firm, Arroyo Bridge Capital Partners, is pursuing a niche and audacious momentum venture strategy in one. Founded in March, Arroyo is aiming to “be the only investor in a start-up” and then to sell it to a Google or Yahoo, according to a Dow Jones piece today (subscription required).
There is logic to this idea; we’ve noted before how Google and Yahoo may be scooping up start-ups before the larger VC firms are getting to them. So the trick for the smaller VC firm is to be focused, and to invest the start-ups even before Google and Yahoo get there.
So on that strategy, the Pasadena, CA, group is out raising $75 million for its first fund, with plans to invest $3 million to $5 million in Southern California companies.
We couldn’t find a web site for Arroyo. We note that Waller had a tech venture incubator, Green Thumb Ventures, and that he says he was involved in the sale of Web-analytics company Urchin to Google in March.
He also joined Funk Ventures last year, but apparently is no longer listed there.
We like this kicker to the Dow Jones piece: “We’re fishing in the same waters as traditional venture firms,” said Mr. Waller. “We’re just going after salmon while they’re going after tuna.”
Welcome to VC 2006.