500 Startups said it closed a $44.1 million second fund that will focus on backing seed and accelerator companies. The new fund is a 50% boost from the firm’s $29.4 million first fund, but came in short of its initial $50 million target.
Founding Partner Dave McClure said he always considered the target aggressive and stressed the increase from his first fund.
The firm will invest about 75% of its money domestically and 25% abroad, despite the big international push 500 Startups has made over the past couple years. The firm has staff in the United States, but also in Mexico, Brazil, China, India and Southeast Asia, and indicated in filings last year it was raising smaller $5 million funds for India and Mexico.