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Costanoa Ventures is a downtown Palo Alto firm that tries to be the first serious money into technical companies. It leads seed and Series A rounds and keeps its partners' workloads small on purpose. Its office sits on Forest Avenue, a few blocks from University Avenue. Its roots run through one of the oldest firms in town.
This page is a neutral explainer for founders and readers interested in the local venture scene. It is based on Costanoa's website and published reporting, with sources named where figures appear. For background on how venture capital works, see our venture capital guide.
Founding: a spinout from Sutter Hill
Greg Sands started Costanoa in 2012. In June of that year Fortune's Dan Primack reported that Sands, a longtime partner at Sutter Hill Ventures, was spinning out to raise a new fund called Costanoa Venture Capital. According to that report, a regulatory filing showed a target of up to $100 million. A first close of about $60 million included portfolio company stakes contributed by Sutter Hill, which kept roughly half of each interest.
Sands joined Sutter Hill in 1998. Before that he worked at Netscape, where Fortune described him as the company's original product manager. Sutter Hill is itself a Palo Alto institution with an office on Page Mill Road. Our Sutter Hill Ventures profile covers that firm's long history.
The firm first used the name Costanoa Venture Capital. Today its website and materials use Costanoa Ventures.
The Forest Avenue office
Costanoa's website lists its Palo Alto office at 160 Forest Ave, Palo Alto, CA 94301. It also lists an office at 185 Berry Street in San Francisco. The Palo Alto address is in the University South neighborhood, a short walk from High Street and the restaurants on Hamilton Avenue. Our University South guide describes the area.
Like every venture office, it is a private workplace. The upside for visiting founders is location. The Palo Alto Caltrain station is within walking distance, so a founder coming down from San Francisco can skip the drive to Sand Hill Road. Another early-stage firm, True Ventures, is a block or two away on High Street.
Stage and focus
Costanoa states its approach in a few lines. It says it leads at seed and Series A and focuses on "big problems in complex, high-impact markets." Its website lists five sectors:
- Applied AI, meaning software that puts AI to work in a specific job or industry.
- AI and data infrastructure, the tools and platforms other software runs on.
- Cybersecurity.
- National security, including software and space companies that serve defense customers.
- Fintech.
The firm makes one claim that sets it apart from larger multi-stage firms. It says each partner invests in just two or three companies a year. The idea is that a partner with a light load can give each founder more time. Costanoa also runs what it calls BuilderOps, a small team that helps portfolio companies with hiring, sales and marketing.
The difference between a seed round and a Series A is mostly about evidence. At seed a company may have a prototype and a few users. By Series A investors expect signs of repeatable demand. Our seed and pre-seed funds page explains the stages and how dedicated early-stage firms think about them.
Notable investments and exits
Costanoa's portfolio page names current and past companies. Current companies it lists include Alation, a data catalog company; Vannevar Labs, which builds software for national security customers; Lively, a health savings account platform; Cyberhaven, a data security company; Muon Space, which builds small satellites; and PayNearMe and Quizlet.
The firm also lists exits with dates:
| Company | Outcome listed by Costanoa |
|---|---|
| Datalogix | Acquired by Oracle, January 2015 |
| VictorOps | Acquired by Splunk, 2018 |
| Kenna Security | Acquired by Cisco, 2021 |
| SGNL | Acquired by CrowdStrike, January 2026 |
| RunReveal | Acquired by ClickHouse |
Security companies make up much of that list, which fits the firm's stated focus. As with any portfolio list, these are the companies the firm chooses to feature. Many early-stage bets end quietly and do not appear on a highlights page.
Funds
Costanoa's fund history is documented mostly in press reports:
- 2012: first fund, with Fortune reporting a target of up to $100 million and a first close of about $60 million.
- 2015: a second fund of $135 million, as reported by FinSMEs in July 2015.
- 2024: Bloomberg reported in September 2024 that Costanoa raised $394 million in new funds.
The firm also raised an opportunity fund for follow-on investments, announced in a press release. We have not listed every vehicle. Fund sizes say nothing about performance.
For a founder, fund size mostly matters for two reasons. It shapes how large a first check the firm can write while still owning a meaningful stake. It also limits how much the firm can reserve for later rounds. A firm with a few hundred million dollars across its funds can lead a seed or Series A and support a company for a while, but it will usually bring in larger investors to lead growth rounds. Our venture capital glossary defines reserves, pro rata rights and the other terms involved.
Costanoa in the local ecosystem
Palo Alto has two clusters of venture offices. The older one is on Sand Hill Road in Menlo Park. The other is downtown, where firms such as Costanoa, True Ventures and Accel work within a few blocks of University Avenue. Downtown firms tend to see founders who already rent desks nearby or who come down on Caltrain. Costanoa's spinout story is also typical of the area. Partners leave established firms, take some relationships with them and start smaller funds focused on one stage.
The firm's sector list reflects what is being built around Stanford today. AI infrastructure, security and defense software all draw on engineering talent that clusters between Palo Alto, Mountain View and San Francisco.
How founders reach Costanoa
Costanoa does not publish a pitch form on the pages we checked. Its website lists a general contact email and a phone number for the firm. The portfolio quotes on its homepage come from founders who describe long working relationships, which suggests most new companies arrive through people the firm already knows. Practical steps:
- Check fit first. If your company is not in AI, data infrastructure, security, national security or fintech, Costanoa is probably not the right first call.
- Read the team page to see which partner covers your sector.
- Ask a founder in the Costanoa portfolio, a lawyer or an angel investor who knows the firm for a short introduction.
- Prepare for a seed or Series A conversation: who the customer is, what you have learned so far and what the round will prove.
Our guides to pitching investors and term sheet basics cover the steps after a first meeting.
Good to know
- The Forest Avenue office is private. Come only for a scheduled meeting.
- Downtown lunch spots work well for follow-ups. See our business lunch guide.
- Costanoa also has a San Francisco office. Confirm which one your meeting is in.
- This page is not investment advice and makes no claims about returns.
Frequently asked questions
Where is Costanoa Ventures located?
Costanoa's website lists two offices: 160 Forest Ave in Palo Alto and 185 Berry Street in San Francisco. The Palo Alto office is downtown in the University South neighborhood, within walking distance of the Palo Alto Caltrain station. Meetings are by appointment only.
Who founded Costanoa Ventures?
Greg Sands founded the firm in 2012. Fortune reported in June 2012 that Sands, a longtime Sutter Hill Ventures partner, was spinning out to raise a fund called Costanoa Venture Capital. Sands joined Sutter Hill in 1998 after working at Netscape.
What stage does Costanoa invest in?
Costanoa says it leads at the seed and Series A stages. It says each partner invests in only two or three companies a year so the team can spend real time with each one.
What sectors does Costanoa focus on?
The firm lists applied AI, AI and data infrastructure, cybersecurity, national security and fintech. Its portfolio page groups companies in those same areas.
How do I pitch Costanoa?
Costanoa does not publish a pitch form on the pages we checked. Its website lists a general contact email and phone number for the firm. A warm introduction from a founder it has backed is the most common route at early-stage firms of this size.