Harmony Partners closes $85 mln for second fund


Harmony Partners has raised $85 million for its oversubscribed second fund, beating its $75 million target. Fund II, which has made investments in Capriza, Loggly and Zerto, will continue to back expansion stage companies. Also, Harmony has added Michael Chou as a principal to its team.

PRESS RELEASE

NEW YORK, NY – November 18, 2014 – Harmony Partners today announced the closing of Harmony Partners II, an $85 million second fund. The fund surpassed its $75 million initial target and turned away significant demand to keep the fund small and focused. Fund II will continue Harmony’s proven strategy of investing in expansion stage companies where a more flexible partner is preferable to traditional growth capital. In addition to the core fund, Harmony raised a $30 million co-investment vehicle from its larger family office LPs.

“The closing of Harmony Partners II represents a major milestone for the firm and reaffirms our differentiated position in the marketplace and our investors’ continued trust in our team and model,” said Mark Lotke, Managing Partner at Harmony. The firm has made five investments to date in Fund II, including enterprise mobility solution provider Capriza, cloud log management provider Loggly, and data replication software provider Zerto.

Harmony also announced the addition of Michael Chou to its team. Most recently, Mr. Chou was at Steve Case’s Revolution Growth where he worked on Revolution’s investments in FedBid, Echo360, Bigcommerce, and CustomInk. Prior to Revolution Growth, Mr. Chou was a technology investment banker at Perella Weinberg and Barclays. “Harmony’s focus on flexible checks addresses a big need in the market,” said Michael Chou, Principal at Harmony Partners. “I’m excited to join Mark and Greg as we continue to create better options for entrepreneurs.”

“We are very pleased to welcome Michael to our firm. He brings deep technology knowledge and a strong network that will assist us in continuing to address this growing market opportunity,” said Greg Eaton, General Partner at Harmony. “Harmony’s unique model has generated more deal flow than we can handle. Michael is a much needed addition to the team.”

Harmony has made 20 investments since launching in February 2011. Recent realizations include Intersect ENT, which went public in July 2014, Divide, which was acquired by Google in May 2014, and Aveksa, which was acquired by EMC in July 2013.

About Harmony Partners
Harmony Partners is a bi-coastal boutique venture capital firm backing bold entrepreneurs scaling remarkable products. Harmony eliminates the deal constraints of traditional growth capital, helping entrepreneurs craft the ideal financing.