KDT Ventures Raises $50 Million for Frontier Tech Investments

KdT Ventures Co-founder Relocates to Austin Following Successful Fund Performance

Similar to numerous other venture capital investors in the last year, Cain McClary, a co-founder of KdT Ventures, has transitioned to Austin, Texas. However, his origin differs significantly from many of his peers, as he previously resided in Black Mountain, North Carolina.

Building a Standout Portfolio

Over the preceding three years, McClary, alongside his co-founder Mack Healy, diligently constructed an investment portfolio that would be considered highly desirable by most investors focused on financing startups leveraging cutting-edge technological advancements.

Beginning in 2017, after securing an initial $3.5 million – ultimately growing to a $15 million fund with a $30 million hard cap – McClary and Healy successfully invested in several promising companies. These included Solugen, a manufacturer of green chemicals; PathAI, a developer of health diagnostics technology; 54Gene, a Nigerian genetic dataset developer; Checkerspot, a company focused on novel biomaterials; and Dyno Therapeutics, a genetics-based therapy firm. 

Securing a New Fund

The strength of this portfolio – and the top decile performance recognized by Cambridge Associates – enabled McClary and Healy to finalize an oversubscribed $50 million fund for further investment in innovative startup ventures. KdT co-founders Cain McClary and Mack Healy. Image Credit: KdT Ventures

Founders' Backgrounds and Synergy

McClary’s roots are in a small town near Leipers Fork, Tennessee. He pursued medical studies at Tulane University and later served on the faculty at Stanford. It was through a shared acquaintance that he connected with Healy.

Healy, previously a lawyer at Fenwick & West representing clients such as Airbnb, Databricks, and Facebook, contributed crucial business acumen and initial capital. McClary, in turn, brought his specialized knowledge of the life sciences to the partnership.

Focus on the Intersection of Software and Life Sciences

The pair established KdT Ventures to concentrate on the convergence of software and life sciences, a sector demonstrating significant potential for new business development. Each company within their portfolio relies on advancements in both computer coding and the understanding of living cells.

Personal considerations prompted McClary’s move from California when the fund was launched in 2017. In 2020, professional opportunities led him to relocate to Austin. Healy had already established a presence in the city, making travel to San Francisco for company scouting more convenient from Austin than from Asheville.

Betting on Texas Innovation

Both founders are placing considerable emphasis on the Dell Medical School at the University of Texas as a potential source of the entrepreneurial talent they seek to support.

“Mack was there… the Dell Medical School and we think it’s going to produce the types of entrepreneurs that we want to support. Houston has a med system,” stated McClary. “I firmly believe that Texas has a place at the table in the future.”

Investing in the "Physical Layer"

“The way that we define it is that we like to invest in the physical layer of the world,” explained McClary. “That includes not only medicine, but chemicals and agriculture. All of that is driven by some of the things that we have this source code for the physical world.”

Expanding Geographic Reach

To identify promising startups, KdT Ventures is extending its reach beyond Austin, with principals actively scouting opportunities in Houston and Research Triangle Park, North Carolina.

Despite this expansion, the firm remains committed to California. A recent addition to the KdT portfolio is Andes Ag, a startup based in Emeryville, California, that is applying yield-enhancing microbes directly to seeds to improve crop yields for farmers.

Industry Recognition

“The KdT team speaks the language of science, making them an outlier in this area of venture investing,” commented JD Montgomery of Canterbury Consulting, a limited partner in both of KdT’s funds. “They are passionate about building the science companies of the future that will tackle some of the significant challenges our world faces in the next decade and beyond.”