Fitz Gate Ventures has closed its third venture capital fund, bringing the firm’s total assets under management to approximately $70 million as it continues to expand its early-stage investment activities across deep tech and other high-growth categories. The Houston-based firm secured Rice University’s Office of Innovation as one of its anchor investors, marking a notable institutional commitment during a challenging fundraising environment for emerging managers.
The new vehicle, Fitz Gate Ventures III, will operate as an early-stage generalist fund with a significant focus on deep tech investments. The firm highlighted Celestial AI, a photonic fabric startup that recently announced it was being acquired by Marvell Technology for up to $5.5 billion, as an example of the type of advanced technology businesses it targets. Fitz Gate led Celestial AI’s seed plus round five years ago, underscoring its track record of identifying high-potential technical founders ahead of traditional venture firms.
Fitz Gate will make initial investments of $500,000 to $1 million and reserve capital for follow-on rounds. The firm will lead, co-invest, or invest independently, depending on the opportunity. Many of the world’s most prominent venture capital firms have later invested in companies that Fitz Gate previously backed, signaling confidence in its sourcing and evaluation approach.
The fund invests across a broad set of technology categories, including semiconductors, metamaterials, and quantum computing. Fitz Gate was the first institutional investor in Quantum Circuits, Inc. Its portfolio also includes startups that have licensed intellectual property from leading U.S. academic institutions, including Princeton, Yale, UCLA, UC Berkeley, Virginia Tech, Baylor College of Medicine, and Vanderbilt.
A distinguishing component of Fitz Gate’s model is its Friends of Fitz network, which is composed of hundreds of founders, venture capitalists, university faculty members, Fortune 500 executives, and subject matter experts. This group assists the firm in sourcing opportunities, conducting due diligence, and supporting portfolio founders through introductions to customers, partners, and additional capital providers.
General partners Jim Cohen and Mark Poag have taught venture capital investing for the past seven years at Princeton University’s Graduate School and Rice University’s Jones School of Business. Their contributions to graduate education at Princeton were recognized with the Clio Award.
