Reuters: TiVo backer Redpoint raising $400 million fund

(Reuters) – Redpoint Ventures, the venture-capital firm behind digital-video recording company TiVo and vacation-rental company HomeAway, is raising a $400 million fund, according to a person familiar with the matter.

The fund comes a year after Redpoint closed on a $400 million growth fund and almost three years after it closed on Redpoint IV.

Currently in venture capital, a gap is widening between top-tier funds that find it easy to raise money and less established funds, which are struggling.

Last quarter, 53 venture-capital funds raised a total of $4.98 billion, according to the National Venture Capital Association, with the top five funds accounting for more than half of total fundraising.

A recent report from the Kauffman Foundation, an organization that studies and promotes entrepreneurship, said that of the funds in its own investment portfolio that raised more than $500 million, none returned more than twice its invested capital after fees.

Still, a handful of firms continue to focus on outsized funds. Earlier this year, Andreessen Horowitz raised $1.5 billion, its largest fund to date. New Enterprise Associates raised a $2.59 billion fund.

Redpoint is known for early-stage technology investing.

Photo courtesy of Shutterstock

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1 Comment

  • Venture Capital has been lean over the past few years due to the economics of the US and European markets. Certain sectors are starting to see small improvements but it may be sometime before we see the days of the roaring 90′s. Comment by John Guchone

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