SIC invests an additional $35 million in Crosslink Capital

Crosslink Capital has invested heavily in Albuquerque-based X-Bow Systems, which has developed a “rocket factory in a box” facility. Crosslink Capital is poised to invest much more in New Mexico startups after winning a new $35 million commitment from the State Investment Council. (Courtesy of X-Bow Systems)

Silicon Valley-based Crosslink Capital is poised to invest much more in New Mexico startups after winning a new $35 million commitment from the State Investment Council.

The council on Tuesday unanimously approved SIC funding for two different crosslink venture funds. This includes $20 million for an early-stage investment fund that will fund initial Crosslink commitments for new companies, and an additional $15 million for a late-stage fund that Crosslink will use to help established startups continue to grow help.

It is the third round of SIC investments in funds managed by Crosslink, following two tranches of $15 million each committed to the company in 2018 and 2020. That brings total SIC support for Crosslink to $65 million, funded by the council’s private equity program, which pumps money from the state’s Severance Tax Permanent Fund into venture companies investing in New Mexico startups.

Previous SIC support contributed to significant Crosslink investments in two local companies, including Santa Fe-based data analytics firm Descartes Labs, which currently employs nearly 100 people, and Albuquerque-based X-Bow Systems, which has developed a potentially game-changing rocket motor Technology that could shake up the space industry.

Crosslink led the first round of seeds in X-Bow (pronounced “crossbow”), which originally formed in 2016. But the company only emerged from stealth mode this year after raising a new $27 million private equity round earlier this year from a group of investors that included Crosslink and Lockheed Martin Ventures.

X-Bow now employs nearly 100 people and is expected to generate $13 million in revenue this year, up from $7 million in 2021, said Crosslink partner Matt Bigge, who now serves on X-Bow’s board of directors . And the company forecasts sales of over $50 million for the next year.

To date, Crosslink has provided more than $45 million to New Mexico companies, which in turn has helped those companies raise approximately $150 million in aggregate funding from various sources, said David Silverman, Crosslink’s general managing partner, am Tuesday to the SIC.

Crosslink is a three decade old venture firm with over $3 billion in assets under management and more than 100 companies in its portfolio.

“We have helped create more than $100 billion in enterprise value at these companies,” said Silverman.

Crosslink has proven to be a “good partner” for the state, inspiring enough confidence among SIC members to approve two more Crosslink fund commitments, SIC spokesman Charles Wollmann said.

“We’re pleased with the investment they’ve already made in X-Bow,” Wollmann told the Journal. “This company is growing fast and we want Crosslink to find more startups like this one in New Mexico to help build our local industries and create high-paying, high-tech jobs here.”

Descartes Labs raises another $20 million

The data analytics firm has $60M in venture capital to date…