Everything is staying the same with Institutional Venture Partners‘ latest fund–same team, same LPs, same strategy–except the amount, as the firm has topped out at $1 billion for Fund 14. It is the largest fund in the firm’s 32-year history.
“LPs like consistency,” General Partner Norm Fogelsong told peHUB.
“The simple fact is that raising an oversubscribed $1 billion fund shows support from our LPs for staying consistent and staying on strategy. We’re not going to China. We’re not going to India. And we’re not doing early stage.”
PeHUB reported that IVP would beat its earlier expectations for the fund in May of this year.
Fogelsong said the fundraising effort began in February, at the firm’s annual meeting, with the goal of raising $750 million. It no doubt helped that IVP invested in HomeAway and Zynga, both of which launched huge IPOs last year. The firm is also an investor in Twitter and the file sharing company Dropbox, which raised a $250 million late stage round in October 2011 at a reported valuation of $1 billion. IVP, which focuses on late stage IT, raised $750 million for its previous fund in 2010.
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Institutional Venture Partners Announces $1 Billion Fund
IVP XIV Is the Firm’s Largest Fund to Date and Will Finance High-Growth Technology Companies
Menlo Park, Calif. – June 28, 2012 – Institutional Venture Partners (IVP), a premier later-stage venture capital and growth equity firm, today announced IVP XIV, a $1 billion fund. This is the largest fund raised in the firm’s 32-year history and brings the cumulative committed capital to $4 billion. The fund was significantly oversubscribed with IVP’s existing Limited Partners taking the vast majority of the fund.
The firm’s General Partners are Todd Chaffee, Norm Fogelsong, Steve Harrick, Jules Maltz, Sandy Miller, and Dennis Phelps. Collectively, they have more than 100 years of venture capital and operating experience.
“Over the past decade, IVP has delivered exceptional performance,” said limited partner Brian Murphy of Portfolio Advisors. “Our clients appreciate their focus and expertise in later-stage technology investing and the remarkable group of portfolio companies that they have assembled.”
IVP partners with entrepreneurs to finance rapidly growing media and technology businesses that are addressing large market opportunities. With IVP XIV, the firm will continue to invest in its three target sectors: Internet and Digital Media, Enterprise IT, and Mobile & Communications.
“I have invested with the IVP team for over a decade now and continue to be impressed with how the team maintains their marketplace leadership position,” commented limited partner Rick Hayes of Oak Hill Investment Management. “The IVP team is unique and special – a multi-generational, deep, experienced team of experts. They have proven to be an excellent partner-of-choice for exceptional, high-growth companies.”
Since its inception in 1980, IVP has invested in over 300 companies, 90 of which have gone public. IVP’s investments include well known companies such as ArcSight, Buddy Media, ComScore, Dropbox, HomeAway, Kayak, LegalZoom, LifeLock, LivingSocial, Marketo, MySQL, Netflix, Shazam, Twitter, and Zynga.
“IVP provided us with guidance and support when we needed it most at MySQL,” said Marten Mickos, CEO of Eucalyptus Systems. “When it came time to select a lead investor for the expansion stage round at Eucalyptus, I went to them first. They are an invaluable asset to young companies with ambitious aspirations, and we are fortunate to be working with them once again.”
With the new fund, IVP plans to invest $10 to $100 million in just 10 to 12 companies a year. The firm believes that this highly selective approach is an essential driver of fund performance. Given its expertise in later-stage investing, IVP is strategically positioned to help entrepreneurs scale operations rapidly, review business strategies, and recruit exceptional executives.
“Entrepreneurs are looking for an investor who shares their vision, communicates clearly, and has the resources to level the playing field,” said Mike Lazerow, CEO of Buddy Media. “IVP brings enthusiasm, professionalism, and reliability to the boardroom, and they helped us to make the extraordinary possible. I hope to have the opportunity to work with them again.”
About Institutional Venture Partners (IVP)
With $4 billion of committed capital, Institutional Venture Partners (IVP) is a premier later-stage venture capital and growth equity firm in the United States. Founded in 1980, IVP has invested in over 300 companies, 90 of which have gone public. IVP is one of the top performing firms in the industry and has a 32-year IRR of 43.2%. IVP specializes in venture growth investments, industry rollups, founder liquidity transactions, and select public market investments. Since its inception, IVP investments include such notable companies as ArcSight (HPQ), Buddy Media, ComScore (SCOR), Concur Technologies (CNQR), Dropbox, HomeAway (AWAY), Juniper Networks (JNPR), Kayak, LegalZoom, LifeLock, LivingSocial, Marketo, MySQL (ORCL), Netflix (NFLX), Polycom (PLCM), Seagate (STX), Shazam, Synchronoss (SNCR), Tivo (TIVO), Twitter, and Zynga (ZNGA). For more information, visit http://www.ivp.com or follow IVP on Twitter: http://twitter.com/ivp.