Tugboat Ventures

Tugboat Ventures is a founder-first, early-stage venture capital firm based in Palo Alto, California, formed in 2006 to back bold entrepreneurs from inception through Series A. The firm describes its partners as 'mentor capitalists,' emphasizing a close, supportive relationship with founders across the entire business lifecycle, much like a tugboat guiding ships into open water. Though broadly sector-agnostic and highly selective, Tugboat has concentrated on San Francisco Bay Area companies in information technology, enterprise software-as-a-service, consumer internet, mobility, retail, media and next-generation online advertising, generally as a co-investor. The firm launched its inaugural fund with more than $43 million in commitments from 13 investors and has operated roughly six private funds with under $150 million in total assets under management. Its portfolio spans around 42 companies, weighted toward enterprise applications and retail, with the majority of deals at the incubation-through-Series-A stages. Tugboat was founded by Dave Whorton, a former general partner at TPG Ventures and associate at Kleiner Perkins Caufield & Byers who worked closely with Amazon, Google and SuccessFactors in their earliest days, and who co-founded four companies including Good Technology, sold to Motorola for a reported $500 million, and Drugstore.com. In 2013 Whorton shifted his primary focus to found the Tugboat Institute, a community for 'Evergreen' private companies built to endure independently rather than pursue venture-backed exits, and Tugboat Ventures' new-investment activity has wound down accordingly. The firm's legacy reflects a mentor-driven, founder-first approach to early-stage technology investing.