Prebys Ventures Impact Fund invests in San Diego’s top tech and healthcare companies. Returns are reinvested to grow the region’s innovation economy for future generations. We focus on early and growth-stage companies, partnering with leading venture firms. Our mission is to fuel lasting economic opportunity and a thriving San Diego community.
Investing in Great San Diego Companies
Having a deep and robust innovation economy sets regions apart on the global stage. Being a recognized hub for innovation, across tech and life sciences, enables economic opportunity for all across the region. Future generations will benefit from the foundation we lay today. Prebys Ventures will help lead the way.
A unique financial model, with a long-term view
Whereas traditional venture funds typically digest the first 20 percent of returns, Prebys Ventures will reinvest returns back into the regional economy. Our goal is to create a sustainable and exponentially growing vehicle that invests into the San Diego community in perpetuity.
Investment Strategy
Our Focus:
- We will invest in tech and healthcare companies in the San Diego region.
- We seek great companies, with a venture-capital growth model.
- We will invest in both early and growth stage.
- We will drive syndicate deals with outside top tier venture firms.
Fund I:
- Fund I is a $50 million fund, to be invested over a five-year period.
- Part of our long-term strategy is to attract more outside investment into the region. We will help build syndicates in companies where we have conviction.
- We expect the majority of our investments will range between $500k and $2M, in rounds sizes ranging between $1M and $20M.
- While we may lead some investments, we will typically take board observer seats. allowing us attend board meetings and receive information.
- We have a robust network of expert and exited CEOs to introduce as independent board members.
Value Thesis
Thesis In Our Favor:
- San Diego is positioned like few other markets to excel. Only San Francisco and Boston have a deeper representation of life science and technology companies. That breadth of industry is important as technologies continue to converge.
- The region is vastly underrepresented by venture funds. Recent Pitchbook analysis shows that despite San Diego companies outraising regions such as Austin, Seattle, Denver, and Chicago – that we have on average 4x-10x less venture dollars resident in the region.
- The region is home to a number of incredible universities. Few regions have the pipeline of talent that San Diego has.
- Our region has a history of paradigm shifting innovation, in areas such as communications, life sciences, genomics, defense tech and cleantech.
- The strength of our research institutions is among the best in the world. San Diego regularly finishes as one of the most prolific patent regions on the planet.
- With our amazing lifestyle and weather, San Diego continues to attract innovative talent and market leaders.
Our Advantage:
- With our vast network of CEOs and investors, we have a unique ability to access leading domain experts, across all fields, for any given company, at any given time in their life cycle.
- Our network affords us expertise both in the early stages of diligence, as well as an ability to help our portfolio companies execute and grow.
- We believe our networks will enable us to add value to our portfolio companies in a way that benefits the founders, the advisors, our syndicate investors, and the region.
Team
The investment team extends far beyond the walls of the Prebys Foundation. With a long history in the region, our network of life science and technology domain experts is extensive, and we collaborate with them regularly to benefit both our strategy and our investments.
Mike Krenn
Managing Director
Mike has been in the middle of San Diego’s innovation community for decades, instigating and growing it into a leading venture capital hub. Mike is the founder of NuFund and CommNexus (now EvoNexus). He was the founder of DLA’s Venture Pipeline group, which worked with startups globally. He was the CEO of both the San Diego Venture Group and Connect. He’s the founder of the TL Fund – San Diego’s regional philanthropic venture fund.
Mike has helped hundreds of companies raise angel and venture capital in excess of $1B (seriously) – all without taking equity or fees, for the good of the region. He’s likely read more business plans than anyone in San Diego.
Frequently Asked Questions for Startups & Founders
What types of startups do you invest in?
We invest across the tech and life science spectrum, in companies that have a venture model for scale and exit. Prebys Ventures will only invest in San Diego-based companies.
What is your typical check size?
Average check size is $500k-$2M. We invest at the seed, Series A and B stage.
Do you lead funding rounds?
We will generally not lead a round, though we may on occasion be the first check in and help syndicate an investment round with other VCs.
What is your strategic value, and do you require a board seat?
- We are local and extremely well-connected with advisors, mentors, potential independent board members. We are also very well-connected with venture capital firms across the country, and will be active in helping our companies fill rounds as well as syndicating future rounds.
- We intend to be highly engaged, supporting our companies across all aspects of the business — from serving as a sounding board and discussing strategy to helping identify and recruit talent.
- We will typically request a board observer seat.
What do you look for in a startup before investing?
Every company is different. But like most venture firms, we look at numerous factors including current market traction, team, market size, competitive advantage, etc.
What is your investment process and timeline?
It’s a process. After an initial meeting, we’ll share our thoughts on the expected timeline. In some cases, it may move as quickly as 30 days, but if we’re in the early stages of getting to know you, it could take several months.
Do you provide follow-on funding?
We maintain reserves for follow-on funding. We expect to be active in helping companies secure additional funding where appropriate.
How can startups get in touch with you?
Please send inquiries to Mike Krenn at mike@prebysfdn.org.
Frequently Asked Questions for Investors & LPs (Limited Partners)
What is your fund size and typical deployment strategy?
We are a $50M fund. We expect to make 5 – 8 investments annually.
What returns do you target?
We aim to be a top-quartile fund — performing among the top 25% of our peer group — while maintaining strong diversity across our portfolio. By investing across both technology and life sciences, we seek to balance risk and maximize long-term returns.
How do you select the startups you invest in?
One of our strengths is the extensive network of venture-backed and exited CEOs across all sectors. We will use our network to both vet our companies, and to help them scale after investment. We believe in the network of networks effect.
What is your track record?
Our Managing Director has helped San Diego companies raise more than $800M in the past ten years.
How can I invest in your fund?
We are structuring a sidecar fund for investors who believe in the San Diego portfolio strategy and want to invest alongside Prebys Ventures. Investors receive a venture-style return, while the carry is reinvested into the Prebys Venture Fund — amplifying your investment’s impact by fueling future opportunities within the ecosystem and giving back to the region at the same time. Minimum investment size is $100k.
What’s the long-term plan for the fund?
When Prebys Ventures succeeds, so does our network, so do our co-investors, and so does San Diego. The goal is to work toward a more vibrant San Diego.