Accel Partners Closes Accel XI and Growth II Funds with $1.35B


Accel Partners Closes Accel XI & Growth Fund II

The Palo Alto-based powerhouse Accel Partners has closed its latest two U.S. funds: Accel XI, a $475 million early-stage venture capital fund, and Accel Growth Fund II, a growth-stage fund that closed with $875 million. The company says it kicked off fundraising for both funds on April 26 — less than two months ago.

Accel closed its tenth, early-stage fund in 2007 with $520 million, and its ninth, early-stage fund with $400 million in 2004. Accel’s first growth fund was closed in 2008 with $480 million.

PRESS RELEASE:

Accel Partners today closed its latest two US funds, Accel XI at $475MM and Accel Growth Fund II at $875MM, for a total of $1.35B in US funds.    The fundraising kickoff date was April 26th.  For historical context on earlier Accel funds, Accel X (closed in 2007) was a $520MM fund and Accel IX (closed in 2004) was a $400MM fund.  Accel Growth I (closed in 2008) was a $480MM fund.

Range of Seed Investing, to Early Stage & Growth Equity Investing

As an example of Accel’s current investment activities, in past 12 months, Accel Partners (US) has invested in a broad range of companies ranging from seed investments to traditional venture financings to larger growth equity investments.  We continue to focus on being the first institutional investor of choice for entrepreneurs helping them build category defining companies, whether at seed, early or growth equity stages. Our focus going-forward remains the same in the new funds. .

A few key deal factoids: in past 12 months, Accel has made investments from $100K to over $60 million in size

Over 25+ Seed investments such as: BaubleBar, MoPub, HotelsTonight, Summify, Cardspring

14 Early Stage investments such as:  BranchOut, Bonobos, ScaleXtreme, Yardsellr,

8 Growth Equity investments such as: 99Designs, OzForex, ShowroomPrive, Rovio, Squarespace, Yapstone et al

Accel Partners’ areas of investment focus remain similar to the historical themes of the past few years including:  Cloud Services & Next Gen Infrastructure, Social Media & Commerce, Gaming As A Service, Consumerization of Software, and Open Mobile among others.

Of note, Accel Partners opened its new New York office in January 2011.

A Perspective on Growth Equity Investing

To note,  Accel Partners strategy for growth investing is quite different from others in the industry that use similar terminology.  Of the investments to-date in the Growth fund, all were cash flow positive at time of investment. Accel Partners has been the first institutional capital in 75% of these growth deals, and 90%+ deals have had under $5MM of paid in capital at the time of investment.  Accel investments in Growth Equity I include:  Facebook, Groupon, 99Designs, Collective Media, OzForex, Atlassian, Squarespace, ShowroomPrive, Rovio, NextG Networks, & Yapstone.

The Accel Team

The partners investing in these funds include:  Andrew Braccia, Jim Breyer, Kevin Efrusy, Sameer Gandhi, Ping Li, Todd MacLean, Arthur Patterson, Theresia Gouw Ranzetta, Jim Swartz, Ryan Sweeney, and Rich Wong.

To note, both Todd MacLean and Ryan Sweeney were investing partners who joined in the last 2 years, and in addition Tracy Sedlock was promoted to Chief Operating Partner

In addition, Accel has also added a number of new venture partners and execs-in-residence including, Rob Glaser, founder and former CEO of RealNetworks; Greg Waldorf, former CEO of eHarmony; and Kirk Bowman, former SVP sales at both EqualLogic & VMWare.

About Accel Partners

Founded in 1983, Accel Partners has a long history of partnering with outstanding entrepreneurs and management teams to build world-class businesses. Accel today invests globally using dedicated teams and market-specific strategies for local geographies, with offices in Palo Alto, California, New York City, London, New Delhi and Bangalore, as well as in China via its partnership with IDG-Accel.

Accel Partners Closes Accel XI & Growth Fund II

June 15, 2011

Accel Partners today closed its latest two US funds, Accel XI at $475MM and Accel Growth Fund II at $875MM, for a total of $1.35B in US funds.    The fundraising kickoff date was April 26th.  For historical context on earlier Accel funds, Accel X (closed in 2007) was a $520MM fund and Accel IX (closed in 2004) was a $400MM fund.  Accel Growth I (closed in 2008) was a $480MM fund.

Range of Seed Investing, to Early Stage & Growth Equity Investing

As an example of Accel’s current investment activities, in past 12 months, Accel Partners (US) has invested in a broad range of companies ranging from seed investments to traditional venture financings to larger growth equity investments.  We continue to focus on being the first institutional investor of choice for entrepreneurs helping them build category defining companies, whether at seed, early or growth equity stages. Our focus going-forward remains the same in the new funds. .

A few key deal factoids: in past 12 months, Accel has made investments from $100K to over $60 million in size

Over 25+ Seed investments such as: BaubleBar, MoPub, HotelsTonight, Summify, Cardspring

14 Early Stage investments such as:  BranchOut, Bonobos, ScaleXtreme, Yardsellr,

8 Growth Equity investments such as: 99Designs, OzForex, ShowroomPrive, Rovio, Squarespace, Yapstone et al

Accel Partners’ areas of investment focus remain similar to the historical themes of the past few years including:  Cloud Services & Next Gen Infrastructure, Social Media & Commerce, Gaming As A Service, Consumerization of Software, and Open Mobile among others.

Of note, Accel Partners opened its new New York office in January 2011.

A Perspective on Growth Equity Investing

To note,  Accel Partners strategy for growth investing is quite different from others in the industry that use similar terminology.  Of the investments to-date in the Growth fund, all were cash flow positive at time of investment. Accel Partners has been the first institutional capital in 75% of these growth deals, and 90%+ deals have had under $5MM of paid in capital at the time of investment.  Accel investments in Growth Equity I include:  Facebook, Groupon, 99Designs, Collective Media, OzForex, Atlassian, Squarespace, ShowroomPrive, Rovio, NextG Networks, & Yapstone.

The Accel Team

The partners investing in these funds include:  Andrew Braccia, Jim Breyer, Kevin Efrusy, Sameer Gandhi, Ping Li, Todd MacLean, Arthur Patterson, Theresia Gouw Ranzetta, Jim Swartz, Ryan Sweeney, and Rich Wong.

To note, both Todd MacLean and Ryan Sweeney were investing partners who joined in the last 2 years, and in addition Tracy Sedlock was promoted to Chief Operating Partner

In addition, Accel has also added a number of new venture partners and execs-in-residence including, Rob Glaser, founder and former CEO of RealNetworks; Greg Waldorf, former CEO of eHarmony; and Kirk Bowman, former SVP sales at both EqualLogic & VMWare.

About Accel Partners

Founded in 1983, Accel Partners has a long history of partnering with outstanding entrepreneurs and management teams to build world-class businesses. Accel today invests globally using dedicated teams and market-specific strategies for local geographies, with offices in Palo Alto, California, New York City, London, New Delhi and Bangalore, as well as in China via its partnership with IDG-Accel.