.406 Ventures

Boston-based venture capital firm founded in 2005 that focuses on early-stage and select growth investments in information technology and related services. The firm backs enterprise IT companies, emphasizing information security, cloud infrastructure, data analytics, and software-as-a-service models, as well as technology-enabled business services and digital health, and it also targets healthcare IT, fintech, mobile software, and next-generation software. It prefers open source and SaaS delivery. Typically investing initial rounds of 2 to 5 million and totaling 6 to 10 million per company, it seeks board representation and often serves as lead or first institutional investor, with minority to majority stakes ranging from 20 to 80 percent. The firm reserves capital for opportunistic investments in more mature companies where its team has prior experience and focuses on opportunities in the Northeast United States.