Industry Ventures has closed Industry Ventures Fund VI, a $400 million secondary fund focused on providing liquidity alternatives for venture capital and technology growth equity investments. The firm also announced that it has recently closed a $155 million special opportunities fund. Industry Ventures is based in San Francisco, with offices in Washington D.C. The firm was founded in 2000. Capstone Partners acted as placement agent for Fund VI.
Industry Ventures LLC, a leading investment firm for venture capital, today announced the closing of Industry Ventures Fund VI, a $400 million secondary fund focused on providing liquidity alternatives for venture capital and technology growth equity investments. Additionally, the firm recently closed a $155 million Special Opportunities Fund, bringing total capital under management to more than $1 billion.
Fund VI is the firm’s largest fund raised to date, and along with the Special Opportunities Fund it will continue to provide a broad range of investment options to address liquidity needs for employees, general partners, limited partners, and founders across the lifecycle of a venture capital investment.
“We saw tremendous demand from our existing investors for Fund VI and we see excellent investment opportunities in the market. The broader VC ecosystem has undergone a significant shift as structural changes impacted the ability for sub-$100 million revenue VC-backed companies to access the public markets, while simultaneously there are hundreds of VC funds that are at the end of their 10-year term or extension period. These dynamics result in a need for growth companies and their investors to find capital and liquidity under new structures and is precisely the need our fund is fulfilling,” said Hans Swildens, Managing Director and Founder of Industry Ventures.
With Fund VI, the firm will continue to invest in secondary direct, limited partnership interests and other special situations to inject liquidity into the VC ecosystem. Founders, angel investors, financial institutions, hedge funds, venture capital firms, corporate venture funds and family offices are among the parties seeking investment structures that align risk/reward profiles for diverse circumstances.
“There is a large stable of VC-backed growth companies that may require another 5-7 years in order to see optimal exits. Our firm works closely with management teams, founders, general partners and limited partners to offer liquidity solutions to fund their next phase of growth,” continued Swildens.
“Industry Ventures is uniquely equipped to offer a choice of investment structures that meet the needs of existing shareholders of private companies who seek liquidity prior to an M&A or IPO event. The firm is a solid and trusted partner to work with,” said Jay Markley, Board Member of Broadsoft.
“We are very pleased to hear about the latest closing of Industry Ventures, a firm distinguished by its experienced management team and sophisticated understanding of the VC community,” said Jason Mendelson, Managing Director and Co-Founder of the Foundry Group. “They have been a great partner to us and we look forward to continuing to work with them in the future.”
Recent Industry Ventures exits include Ancestry.com, Broadsoft, Interxion, Isilon (acquired by EMC), JaJah (acquired by Telefonica), Pure Digital (acquired by Cisco), and Sourcefire.
Capstone Partners acted as exclusive global placement agent for Fund VI, assisting the firm in exceeding its cover target and in reaching its hard cap of $400 million.
About Industry Ventures LLC
Industry Ventures is a leading investment firm that focuses on venture capital and technology growth equity. The firm invests in secondary and primary opportunities, including purchasing direct portfolios, founders’ interests, tail-end funds, limited partnership interests and other special situations. Founded in 2000, the firm manages over $1 billion of institutional capital and is headquartered in San Francisco with an office in Washington, D.C.