June 29, 2015

As Frontier Capital closed out its investment in Conclusive Analytics — originally Mailnet Services founded in Franklin, TN, outside Nashville — Milt Capps at Venture Nashville Connections talked to Richard Maclean about the firm’s more current interest in the Nashville market:

Charlotte’s Frontier Capital eyes Nashville market for investments

FRONTIER CAPITAL, based in Charlotte, N.C., may invest in “one or two” Tennessee companies via its recently closed Fund IV, and those targets are likely to be based in Nashville or its suburbs, according to Frontier Co-Founder and Managing Partner Richard Maclean.

Maclean said his team views the Nashville market as an important source of high-growth, lower middle market software and tech-enabled business services opportunities for Frontier’s deal pipeline.

Music City’s venture ecosystem is extraordinarily well organized, with deeper Angel and early-stage investors resources than other Tennessee cities or Charlotte, he said.

Frontier has conversations underway in the Nashville area, but no termsheets currently on the table here, said Maclean. He added that he believes Nashville will relatively soon see some investment from its $390MM Fund IV, which is likely overall to invest in “13 or 14” companies during the next few years.

Informed that some—by no means all—Nashville players complain the city and state have too few native deal-leading Angels and too few local sources of capital for late-Seed or perhaps $2MM-$5MM Series A rounds, Maclean responded that such concerns are heard in many cities. When opportunities are consistent with its growth-oriented investment criteria, that’s a gap that Frontier can often fill, he added.

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