Cimarron brings venture capital and business-building talent to underserved regions.
Cimarron Capital Partners is a pioneer in strategic fund investing
with over twenty years of experience designing and managing venture capital and private equity programs for regional economies. We utilize private capital to attract high-performing business builders whose time, talents, energy and capital help grow local entrepreneurial ecosystems. Our investments are designed to produce both strategic impact and financial return.
Cimarron's approach to investing
helps regional economic development efforts:
Attract Business Builders
By investing in venture capital and private equity funds, a region captures the time and attention of these professional business builders
The talents, energy, and capital of fund managers can catalyze growth in emerging sectors
Fund managers seek out and support the most innovative segments of an economy
Build Entrepreneurial Ecosystems
Along with investments, activities such as trainings, forums, and angel networks help grow the local ecosystem
Many regions in the U.S. are underserved by the national venture capital network. This presents a challenge to the many family offices, foundations, corporations and economic developers who hope to match the research and talents in their communities with smart capital.
Cimarron takes on this issue through the use of a fund of funds operated so as to build more connections between local entrepreneurs and the national venture capital community. We back fund managers who have a history of producing solid returns, who demonstrate an appetite for deals that fit with opportunities in the target region, and who commit to plans for becoming visible and accessible to local entrepreneurs, in effect to be part of the region’s investor and entrepreneurial community. We negotiate time-and-attention clauses, closely monitor the funds throughout the investment, and leverage the fund investments to serve our clients in other activities of ecosystem development.
A regional fund of funds can help local companies connect with the national network of venture capital funds.
The benefits accrue with time: more elements of the national venture capital network grow to know the region; local companies have more investors to talk to about their needs; local accelerators, angels, and venture investors connect with a broader network of potential co-investors and specialized knowledge; and the fund of fund’s investors contribute to the growth of the local economy while also putting their capital to work for a profit.
Cimarron has designed and built funds of funds for the Oklahoma Capital Investment Board, the Arkansas Development Finance Authority, and the Iowa Capital Investment Corporation. We have also advised several states as well as the countries of Mexico and Colombia regarding the development of fund of funds programs. The $122 million invested by our three U.S. clients in venture capital and private equity funds, selected and monitored by Cimarron, have generated $317 million of in-state investments, which, in turn, have generated over $2.5 billion of aggregate economic impact in the form of new jobs, payroll, and tax revenue.1
1. Impacts through 2014.
Cimarron's investments have generated a total of $2.5 billion in local economic impact.
Cimarron has achieved positive Financial Returns
as well as Strategic Impact.
In addition to achieving a substantial strategic impact, Cimarron always seeks to generate a market rate of return for its investors. Toward that end, Cimarron targets seasoned national fund managers from outside the targeted region who bring their talent to local economies. We invest in funds with the following characteristics:
- Competitive footprint and ability to invest from a healthy pipeline of deals
- Strong reputation in the venture capital/private equity industry and ability to successfully syndicate deals as needed
- History of working productively and respectfully with entrepreneurs
- Sufficient experience and outstanding performance in the current investment strategy
- Willingness to be part of a local ecosystem and implement a credible plan to source in the targeted geography
Within that strategy, we have produced top quartile returns in specific portfolios and a second quartile return overall.