XLIO Ventures has secured an additional $100 million, increasing its total available funding facility to $150 million to build technology startups designed for eventual acquisition by corporate clients.
The funding will support the expansion of XLIO’s Made to Order model, under which a client defines a specific technology capability it needs. XLIO then finances and builds a dedicated company to develop that capability, with its location and incorporation structured around the client’s requirements.
Once the startup meets agreed performance indicators, typically within one to three years, the client acquires both the technology and its team. Transactions generally range from $10 million to $50 million.
The additional capital will allow XLIO to undertake more engagements simultaneously and expand into new sectors and geographic markets. The model gives corporate buyers a way to commission proprietary technology through a separate business before completing an acquisition tied to performance milestones.
XLIO is also opening an office in Austin, Texas, led by CEO Ron Kornfeld. The location will bring the company closer to engineering talent, founders and prospective corporate buyers in the region.
The company cited Austin’s established technology workforce and startup activity as reasons for the expansion. According to Crunchbase figures included in the announcement, Austin-based startups raised a record $7.19 billion in venture funding in 2025, a 64.8% increase from 2024.
Founded in 2020 and headquartered in London and Seattle, XLIO is backed by private equity and works with technology vendors and other large organizations seeking to develop proprietary capabilities.
The Austin office and expanded funding facility will support that approach by providing additional capacity to form, finance and build businesses around individual clients’ technology requirements.
KEY QUOTES
“Austin’s startup economy is vibrant. There’s deep engineering talent here, a steady stream of experienced founders, and a business community that backs new companies. I’ve moved here because I want our clients to share in that. Made to Order lets a business tap into Austin’s talent and pace to get the exact technology it needs, built by a team focused on nothing else. This funding means we can help many more of them gain a foothold here.”
Ron Kornfeld, CEO Of XLIO Ventures