LiveOak has raised over $100 million to back Texas-based startups

Texas has the second-largest state economy in the U.S. but, when it comes to venture capital investment, the Lone Star State last year ranked 4th in terms of dollars raised and 6th in terms of the number of companies funded. A big part of the problem has been a relative lack of in-state VC firms and, in particular, new in-state firms that remain committed to early-stage opportunities. That’s where Austin-based LiveOak Venture Partners is hoping to step in, today announcing that it has closed its debut fund with around $109 million in capital commitments.

Texas is busting at the seams with new startups and a growing pool of tech talent. And today, those Texans have another firm to pitch when raising money. Austin, Texas-based venture firm LiveOak Venture Partnersclosed a new $109 million investment fund today. The firm said the new fund makes sense because it’ll take advantage of the state’s prominence as one of the largest areas for tech employment and new innovation in the country. (As an Austin resident, I can say that I’m constantly surprised by the number of startups operating in my backyard I hadn’t realized were there.) The firm also said the startups in Texas are “capital-starved,” citing that total investments in Texas came in at $1.3 billion last year, compared to the $12.2 billion in total investments from Silicon Valley alone.