Lanham Napier, co-founder and chief executive officer, BuildGroup. Courtesy photo.

BuildGroup, a Venture Capital firm founded in 2015, announced on Tuesday that it has raised $330 million aimed at investing in emerging software companies.

The Austin-based firm’s investors include “successful entrepreneurs and business leaders from Texas and the Rocky Mountains, with the founders contributing a significant portion of the overall funds,” according to a news release.

BuildGroup plans to use the money to invest in approximately 10 emerging software companies during the next five years.

Former Rackspace Chief Executive Officer Lanham Napier founded BuildGroup with Jim Curry, former senior vice president of strategy and corporate development at Rackspace, Klee Kleber, former Chief Marketing Officer at Rackspace and WP Engine and Peter Freeland, a venture capitalist from General Catalyst.

“BuildGroup was designed as a holding company instead of a venture capital fund to free entrepreneurs from the expectations of quick exits, allowing their companies to pursue long-term greatness,” according to a news release.

“Venture Capital works for some but not for all. Five-year horizons are designed for growth at-all-costs and quick exits. We provide permanent capital from aligned investors that really get it, which means no forced exits,” Lanham Napier, co-founder and chief executive officer, BuildGroup, said in a news release. “We want to serve the teams that build great companies, and we believe that greatness resides at the intersection of a company’s people, product, customers, culture, and business model. The magic happens when these elements are designed to reinforce each other.”

BuildGroup has already invested $57 million of its $330 million in CDSC, Anaconda, Fiix, and Valkyrie Labs.