Member Spotlight: TechNexus Venture Collaborative
For this deep dive, we spoke to Fred Hoch, Founder and General Partner of TechNexus Venture Collaborative.
TechNexus Venture Collaborative launched in 2007 as a physical collaboration space for Chicago’s technology entrepreneurs. What began as a clubhouse for innovators eventually expanded into a first-of-its-kind Venture Collaborative that helps leading corporations invest in ambitious startups to drive their business forward. We are, today, a combination of venture funds, corporate joint ventures, operating partners, ecosystem builders and a fast-growing investment portfolio.
By operating at the intersection of startups and corporate innovation, we’re helping legacy businesses grow and prepare for the future by connecting them to an ecosystem of ventures relevant to their industry. Since 2017, TechNexus Venture Collaborative has invested in over 150 portfolio companies.
These powerful partnerships between large organizations and startups drive innovation and growth by uncovering new opportunities, transforming industries, and achieving long-term success.
We take a different approach to corporate venturing. In addition to strategic capital, we incubate startups, draw insights from the ecosystem, collaborate in a structured way, and build new revenue streams. More than half of our team is focused on post-investment collaboration. We also extend the insight into advantaged investment funds and the development and management of new operating entities.
What defines your portfolio?
With $300 million in AUM, TechNexus invests in a variety of industries where there is strategic alignment with our corporate partners. Our current themes include audio and voice technology, artificial intelligence/machine learning, B2B software, electrification, outdoor recreation, and more.
We’ve helped corporations like RV firm THOR Industries invest in Harbinger Motors. The two companies collaborated to launch the world’s first hybrid RV, which debuted last year. We work with boat maker Brunswick to invest directly into marine startups relevant to its business. And we’ve partnered with the Department of Homeland Security’s Science and Technology Directorate to source technologies capable of preventing wildfires in Hawaii.
Our portfolio consists of startups building innovative solutions that impact the future of how our world moves, works, lives, and thrives.
Tell us about the current VC landscape in your geography/region.
While our impact is global, our home is in Chicago.
Founded nearly 20 years ago, TechNexus launched as Chicago’s first tech hub. And we’ve had our pulse on the Chicago startup ecosystem ever since. We’re located in TeamWorking by TechNexus, a coworking space that’s also home to more than 90 fast-growing Chicago companies.
Chicago is one of the top emerging cities for startups in the world, and has benefited from its close proximity to Fortune 500 companies throughout the Midwest. The city, like many metros, has seen a pullback in venture funding from the pandemic-era highs. However, Chicago startups continue to grow and thrive as the overall innovation ecosystem matures.
What are the benefits of being an NVCA member?
At our core, we’re collaborators. We know the collective experience is greater than the sum of the parts. It’s invaluable being part of the NVCA, which shares our belief in collaboration and empowering the next generation of U.S. companies to fuel the economy of tomorrow.
The increased visibility, networking opportunities, exclusive research, and policy influence being a NVCA member provides have proven beneficial for our firm.
What’s ahead for your firm?
As we continue to invest beyond the check, we’ve launched a content platform to better connect our ecosystem and tell the stories that highlight the corporate-startup connections we facilitate. Through our Venture Impact program, we’re leveraging our entrepreneurial expertise through hands-on advisory, a broad corporate network, and an investor database to deepen relationships with our founders. And with our Catalyst Network, we’re activating our expert advisory network to accelerate support for our 150+ portfolio companies and community.
We’re also building on our nearly decade of venture investing by developing industry-specific funds, exploring larger follow-on funds, and leading small private equity transactions.
We believe the traditional corporate venture capital industry needs an upgrade. And that upgrade is a venture collaborative approach that bridges the gap between corporations and startups. TechNexus works as a trusted partner to both parties, helping create new business opportunities and revenue streams that drive long-term success for both.
