Montana backs $21m fund

Next Frontier Capital’s inaugural fund has closed with more than $21m in commitments from investors including University of Montana Foundation.

The fund focuses on technology and healthcare companies based in Montana or have a connection to the state. However, on its website, Next Frontier Capital states that it will consider non-Montana applicants on a select basis.

The fund will look to lead or co-lead rounds with commitments between $200,000 and $1.5m. It has made three investments since it was launched last year, including a participation in clean water technology company Clearas Water Recovery’s $4m series B round.

The other investments were in biotech company Siteone Therapeutics, which is developing novel treatments for chronic pain, and Submittable, which operates a cloud-based platform for publishers, schools and other organisations.

In total the fund has more than 70 limited partners.

Shane Giese, president and chief executive of University of Montana Foundation, said: “University of Montana Foundation is pleased to be able to make an investment in Next Frontier Capital. The investment provides further diversification of the foundation’s long term investment portfolio, and offers an avenue to invest in Montana-based industries.”

Will Price and Richard Harjes, general partners of Next Frontier Capital, said: “In Montana, we have a tradition of entrepreneurship, high university and commercial research activity and quality venture investment candidates.

“Yet, Montana is severely undercapitalised, oftentimes leaving opportunity for innovation, job creation and economic growth unrealised.”