Stone Mountain Ventures Raises $5M Fund II to Invest in Early Stage Health and AI Startups

Stone Mountain Ventures (SMV), a venture capital firm investing in early stage healthcare and AI startups, today announced its $5M Fund II. The fund aims to support early-stage, capital-efficient companies across North America, while continuing the firm’s commitment to backing the next wave of innovative founders. The fund plans to invest initial checks of $250,000 into each new investment.

Founder John Diaz, a San Antonio native, created Stone Mountain to identify and invest in overlooked industries including mental healthcare. He previously worked at Bain Capital and Wellington Management, where he honed his expertise in business development and operations working with companies to help them improve. Diaz has firsthand experience as an entrepreneur, having founded two companies previously and currently owns services businesses in Dallas, which now employ 15 people and generate nearly $1 million in annual revenue. Alongside his team, he uses his learnings from managing people and business operations to help founders scale since he has deep insights to what founders go through and the many decisions they make.

“With Fund II, we’re excited to continue backing capital efficient companies at the earliest stages. This builds on our strong track record investing and advising high-potential startups with a mix of venture and private equity lenses to build long lasting sustainable businesses,” explained John Diaz, founder and general partner at Stone Mountain Ventures. “We are ruthless in the support of our founders and will continue to work closely with them to grow and scale them into world-class companies.”

SMV’s Fund I achieved notable success with early investments in high-potential companies, including Grow Therapy, which has shown a more than 18x return and is the fund’s first unicorn. Other investments include Legion Health, Mdisrupt, Shmoody, and Mood Health, all demonstrating strong growth in healthcare supporting physicians, patients, and the overall healthcare ecosystem. Additionally, the fund has invested in high growth companies such as Bezel and Waffle, a luxury watch marketplace and insurtech platform leading the way their respective industries operate. Fund II will continue this trend, with a strong focus on empowering a new generation of innovators. The firm’s LPs and advisors include executives from Bain Capital, Goldman Sachs, Napier Park, senior affiliates at St. Mary’s University, multiple physicians, multiple PE executives, and others.

“John is an incredible investor to have at your side, I can always count on his sound advice when navigating complex problems or when we need a sounding board” said Yash Patel, Co-Founder and CEO of Legion Health. “I’m excited to see this next chapter for Stone Mountain Ventures and know the founders they back will be in great hands.”

“We’re thrilled to have Stone Mountain on board and John is a real partner, not just an investor,” stated Nathan Thomas CEO and co-founder of Shmoody. “His passion for mental health, strategic insight, and valuable connections have already been a huge asset to Shmoody’s journey forward.”

In addition to his work at Stone Mountain, Diaz is actively involved in his alma mater St. Mary’s University San Antonio as a junior board member and enjoys running and training for marathons, aspiring to qualify for the Boston Marathon.

For more information and to share investment opportunities, please visit https://www.stonemountainventures.com/

About Stone Mountain Ventures:

Stone Mountain Ventures is a Dallas-based venture capital firm focused on investing in capital-efficient, early-stage companies, with a strong emphasis on healthcare and technology startups. Founded by John Diaz, the firm leverages a private equity mindset to build world class businesses. Learn more at https://www.stonemountainventures.com/

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