Kevin Colas, Managing General Partner at Snatched Ventures, is at the forefront of a new wave of venture capital, focusing on deeptech innovations poised to drive sustainable operational transformation. In an exclusive conversation, Colas outlined his firm’s distinctive approach, its impressive track record, and his vision for the future of venture capital, particularly in the context of California’s evolving investment landscape. Snatched Ventures is an institutional early-stage venture capital firm with a stated goal of raising a $100 million fund to invest in companies leveraging eight science-based technologies. These technologies are designed to address complex engineering challenges and deliver significant environmental, economic, and social impact. The firm prioritizes technologies that are ready for deployment and scaling in the near term, rather than those with long development horizons.
The core technological pillars of Snatched Ventures’ investment thesis include Artificial Intelligence/Machine Learning, materials science, advanced manufacturing, biotechnology, optics, electronics, robotics, and blockchain. These are applied across six thematic areas where the firm possesses deep expertise and a proven investment history: transportation and logistics, energy and water, food and agriculture, fashion and beauty, precision medicine and aging, and retail and e-commerce. A key differentiator for Snatched Ventures is its stringent underwriting criteria, often referred to as the "4Fs," which include a minimum of $1 million in early revenue, a gross margin of 50%, a cash conversion score of 0.25x, and a revenue-to-capex ratio of 3x. These metrics underscore the firm’s commitment to investing in companies that demonstrate financial sustainability and scalability, capable of weathering economic cycles. Snatched Ventures aims to lead Series A rounds and opportunistically participate in Seed and Series B rounds, provided minimum ownership and underwriting criteria are met.
A Foundation Built on Proven Performance
Snatched Ventures’ investment strategy is built upon the collective experience and success of its principals. Kevin Colas, prior to co-founding Snatched Ventures, established the Empire Angel Collective (EAC), which operated as de facto Fund I. Since 2020, EAC has deployed approximately $10 million across more than 40 startups, with a significant focus on deeptech exposure. Concurrently, Alessandro, the co-General Partner at Snatched Ventures, led deeptech investments at Hyundai’s corporate venture capital arm.
The combined track record of Colas and Alessandro is notable, boasting top-decile performance metrics. Across 24 transactions involving 22 companies, their portfolio has achieved a 4.4x total value to paid-in capital (TVPI), a 151% distributed to paid-in capital (DPI), and a remarkably low loss ratio of 1.6%. This success includes the creation of five unicorn companies, one initial public offering (IPO) exit, and three acquisitions, one of which was an all-cash transaction. This historical performance provides a robust foundation for Snatched Ventures’ current and future investment activities. The EAC continues to deploy capital, with four new investments made in 2024, exclusively in the deeptech sector. Notably, advisors to Snatched Ventures have already committed to invest in the upcoming Snatched Ventures Alpha, LP fund, signaling strong confidence and providing a pipeline of potential investments.
Navigating the Modern Venture Capital Landscape
Colas offered a candid assessment of the current venture capital environment, particularly in California, historically the epicenter of venture investment. He articulated a concern that the industry has drifted from its foundational principles, which emphasized hands-on support for portfolio companies beyond mere capital infusion. "Venture needs to return to its initial real DNA," Colas stated, emphasizing the importance of providing strategic partners, vetted vendors, professional services, and crucial network connections, including talent acquisition and strategic planning support.
The post-pandemic era, following a significant valuation bubble between 2019 and 2022, has seen a shift in venture capital dynamics. Colas observed a trend where competition for "bigger checks" has intensified, driven by substantial fundraises by marquee firms. This has led to a concentration of capital, making some large funds powerful by sheer size rather than necessarily by consistent performance.
"Deep due diligence is essential to make sure to invest public money properly," Colas stressed, highlighting this as a fiduciary duty regardless of market cycles or the fear of missing out (FOMO) that can drive hasty investment decisions. He advocates for an investment approach akin to managing one’s own capital, asserting that the role of VC managers is to provide ignition capital and support companies through their growth and challenging periods until a successful exit. However, he cautioned against venture money becoming a lifeline for survival, arguing instead that it should empower companies to become self-sustaining and profitable. "VCs should push startups to build businesses sustaining themselves and becoming quickly profitable, able to fly with their own wings," he remarked, contrasting this with the practice of startups relying on extensive venture funding until an IPO or acquisition.
The Value of Membership and Future Aspirations
Colas also spoke to the benefits of being a member of the National Venture Capital Association (NVCA). He highlighted the opportunity to connect with a broader network of investor peers for deal syndication, co-leading opportunities, and portfolio support. Furthermore, he sees value in engaging with NVCA’s activism and policy advisory groups to influence positive changes and policy evolutions for the venture and deeptech sectors.
Looking ahead, Snatched Ventures is focused on fundraising for its $100 million fund, with an initial close targeted at $30 million. The firm aims to attract a balanced mix of limited partners (LPs), including financial institutions, corporations, and family offices, with whom Colas anticipates a deep and collaborative relationship, offering co-investment opportunities.
The firm’s deployment strategy will involve rigorous due diligence to proactively source high-potential companies at the intersection of their eight core deep technologies and six thematic areas. Colas emphasized the importance of deal flow exchanges, conferences, and accelerator/incubator partnerships. The ultimate goal is to invest in teams and businesses that demonstrate both environmental and financial sustainability, capable of generating outsized returns for all stakeholders – LPs, founders, strategics, GPs, and the Snatched team.
Colas articulated an ambitious vision for Snatched Ventures: to build a lasting platform of thematic deeptech funds that fundamentally alter how society and businesses leverage innovation to enhance efficiency and accelerate the transition towards truly sustainable models. This mission is driven by a profound sense of responsibility towards future generations and the planet. "Ultimately to build a lasting platform of thematic deeptech funds changing the way we live and business use innovation to boost their efficiency while transitioning faster towards really sustainable models for the planet and people. For our kids, for us and to avoid having to one day flee on Mars with Mr. Musk because we ended up destroying this amazingly beautiful and well designed blue planet," Colas concluded, underscoring the urgency and significance of their investment focus. This commitment to impactful innovation, coupled with a disciplined and performance-driven approach, positions Snatched Ventures as a significant player in the evolving landscape of venture capital.