Redpoint Ventures’ Menlo Park offices must be an awfully happy place to have been these last 12 months. The VC has racked up billions of dollars’ worth of IPOs, sales to strategic buyers and even launched itself into a handful of new investments as of late. Some of its deals—like eye-popping multiples on Cloud.com, or its massive stake in successful IPO Homeaway—have made big headlines, but the real tale of the tape will come when its more recent funds’ IRR are revealed.
Redpoint Ventures I, an astonishing $600 million first time fund with a vintage of 1999, also comes with a net IRR of -6.8%, according to the Regents of the University of California, an investor. Redpoint Ventures II, which put together more than $1 billion, and in which the University of California and the state’s CalPERS pension system both invested, generated a multiple of 1.30x, according to CalPERS, and a net IRR of 4.7%, the Regents of the University of California data shows.
Other Redpoint funds, including a $400 million 2010 vehicle dedicated to early-stage tech and Internet investments, and a 2006 vehicle with a similar strategy, haven’t generated truly measurable results yet, what with their only being so far from inception. But, when those numbers come back, they will be in part fueled by the deals struck by the VC in the last 12 months—provided, at least, they exercise prudent market timing in unloading hundreds of millions of dollars’ worth of post-IPO shares when it’s time to get liquid. Redpoint’s not done yet, either, still investing in companies like games titan Kabam (May 2011), and setting itself up for more mega-exits in the future. The firm’s earliest LPs took a gamble on big talent at the height of the dot-com bubble, but those that stuck through thick and thin are seeing a very, very bright light at the end of the tunnel.