Cantos launches its third fund, pumping $50 million into startups near the border
Hard tech is tough, but when there are major breakthroughs, it can come with outsized returns and huge opportunities. Cantos has just closed its third fund to invest in science-based companies in the pre-seed and seed stages to "improve billions of lives and save the planet".
"I have a bachelor's degree in international relations. I'm not technical at all. I've always been kind of a science fiction reader and observer," admits Ian Rountree, GP and founder of Cantos Ventures." You hear all these truisms that I think are largely a myth of modern venture capital. These myths include that 'hardware is hard and slow' and hard tech is more capital intensive. There are assumptions that it's not as good as an investment. And yet, if you look at the world's biggest problems, it makes you wonder. If we're going to mitigate climate change, disease, armed conflict, existential risks, poverty – building real shit in the real world probably has more impact than software in many cases, but venture capital is fundamentally afraid of it. It didn't really sit well with me."
Rountree took a closer look at the industry, and where others saw risk, he saw opportunity.
"If all of Sandhill Road is emphatically saying that I don't invest in hardware and bio, then that might be an interesting gap to bridge," says Rountree.
Cantos 3 focuses on pre-seed and seed investments in highly technical climate, TechBio, aerospace and next-generation computing startups. It specializes in taking technical risks alongside founders and will tolerate more than other venture capitalists, she says.
"We seek to minimize market risk and seek out companies that produce cheaper raw materials with a lower carbon footprint, raise the standard of care, or improve the defense capabilities of democratic nations. We believe that the greatest companies can also have the greatest positive impact on people and our shared planet when managed well, so we aim to support entrepreneurs with ambitions to build $10-100 billion businesses and at least beyond," says Rountree. "Our thesis is that these companies will either offer platform potential or a full stack. We view our founding partners as the new industrialists."
Hard tech is tough, but when there are major breakthroughs, it can come with outsized returns and huge opportunities. Cantos has just closed its third fund to invest in science-based companies in the pre-seed and seed stages to "improve billions of lives and save the planet".
"I have a bachelor's degree in international relations. I'm not technical at all. I've always been kind of a science fiction reader and observer," admits Ian Rountree, GP and founder of Cantos Ventures." You hear all these truisms that I think are largely a myth of modern venture capital. These myths include that 'hardware is hard and slow' and hard tech is more capital intensive. There are assumptions that it's not as good as an investment. And yet, if you look at the world's biggest problems, it makes you wonder. If we're going to mitigate climate change, disease, armed conflict, existential risks, poverty – building real shit in the real world probably has more impact than software in many cases, but venture capital is fundamentally afraid of it. It didn't really sit well with me."
Rountree took a closer look at the industry, and where others saw risk, he saw opportunity.
"If all of Sandhill Road is emphatically saying that I don't invest in hardware and bio, then that might be an interesting gap to bridge," says Rountree.
Cantos 3 focuses on pre-seed and seed investments in highly technical climate, TechBio, aerospace and next-generation computing startups. It specializes in taking technical risks alongside founders and will tolerate more than other venture capitalists, she says.
"We seek to minimize market risk and seek out companies that produce cheaper raw materials with a lower carbon footprint, raise the standard of care, or improve the defense capabilities of democratic nations. We believe that the greatest companies can also have the greatest positive impact on people and our shared planet when managed well, so we aim to support entrepreneurs with ambitions to build $10-100 billion businesses and at least beyond," says Rountree. "Our thesis is that these companies will either offer platform potential or a full stack. We view our founding partners as the new industrialists."
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