The very public (and political) failure of Solyndra left a bunch of venture firms with black eyes, but the solar company’s bankruptcy didn’t hurt fundraising efforts for at least one of its backers: Redpoint Ventures.
The Silicon Valley venture firm has raised $400 million for its “Redpoint Omega” fund, which will target growth companies. That’s considerably more than the $250 million the firm raised for Redpoint Omega LP in 2007.
Fundraising for Omega II began over the summer (without the help of a placement agent) and the firm held a final close two weeks ago, a knowledgeable source says. Fundraising went well because the VC had “a good story to tell” on the growth side, the source says.
Redpoint declined comment.
With offices in Menlo Park, Calif., Los Angeles and Shanghai, Redpoint typically invests in companies in sectors including broadband infrastructure, enterprise software and mobile, as well as energy.
Redpoint’s growth funds target companies that are generating revenue, growing very fast and may or may not be profitable, the source says.
Omega II’s successful fundraising comes after Redpoint was in the news as one of the backers of Solyndra, which filed for bankruptcy proteection in September after raising more than $1 billion in venture capital and getting a $535 million loan guarantee from the federal government.
The source noted that “Redpoint Omega did not invest in Solyndra.”
Instead, Redpoint backed Solyndra from its early stage focused Redpoint Ventures II. Overall, Redpoint invested more than $100 million in the company, according to data from Thomson Reuters (publisher of peHUB). Redpoint owned about 6% of Solyndra, according to a March 2010 filing for an IPO, which the company later decided not to pursue. UPDATE: Redpoint, in fact, invested $40 million in Solyndra, a firm spokesman says.
Solyndra’s name has been removed from Redpoint’s website.
Despite the failure of Solyndra, Redpoint Ventures II has had its fair share of successes. The $750 million fund, raised in 2000, has a 5.5% net IRR, according to March 31 data from CalPERS, an investor in the fund. Fund II’s hits include Homeaway, which went public earlier this year, and Right Media, which was sold to Yahoo! in 2007 for $680 million.
Earlier this week, Adobe Systems announced it has bought Auditude in a deal valued at $120, according to Gigaom. Redpoint and Greylock Partners invested $38 million in Auditude, the story says. The Auditude investment came from Redpoint Ventures III LP which raised $400 million.
Redpoint raised a fourth early stage fund last year. The pool, Redpoint Ventures IV LP, collected $400 million.DON'T MISS IT! Now in its 10th year, PartnerConnect Midwest is bringing you 300 attendees, over 400 private ExecConnect meetings between LPs and GPs, and three insightful tracks including Buyouts Funds, Buyouts Deals and Co-Investments. REGISTER TODAY!