Emergence Capital Raising Third Fund

The San Mateo-based venture firm Emergence Capital is in the process of raising its third fund with a target of $200 million, according to a regulatory filing. The form says that the first sale has yet to occur.

VentureBeat first reported on the filing earlier this afternoon.

Emergence raised its first, $125 million, fund in 2004, with backing from investors including CalPERS, Fairview Capital Partners, and the University of Michigan.

Of the companies the firm backed from that fund, most have not yet had an exit. However one company, the on-demand-performance outfit SuccessFactors, carried out a successful public offering in 2007. Two other companies, Adapt Technologies and Krugle, were acquired for undisclosed amounts. (The companies raised $9.8 million and $8.38 million, respectively.)

Emergence, which focuses on the software-as-a-service (SaaS) sector, has backed 12 companies from its second fund, which it closed with $200 million in 2007, according to Thomson Reuters (publisher of this blog).

Among the startups in that second fund is Yammer, a three-and-a-half-year-old whose tools allow companies to create internal social networks. Yammer has raised $40 million to date from backers including Charles River Ventures, Founders Fund, and U.S. Venture Partners.

Emergence has also backed YouSendIt out of its second fund. The 7-year-old, digital delivery company has raised $53.7 million to date from a long line of investors, including Alloy Ventures, Seven Rosen Funds, and Adams Street Partners.