Lightspeed Ventures Dials It Down for 9th Try With $675M Fund Target

Lightspeed Venture Partners will seek $675 million for its ninth fund, the VC firm stated in an SEC filing Thursday morning.

The figure is about 15 percent shy of what its most recent fund, a 2008 $800 million vehicle, amassed. Along with the ongoing fundraise comes a handful of personnel moves for the firm. In November 2011, entrepreneur Dev Khare joined Lightspeed in India, and, prior to that, Jake Sied and Eric O’Brien departed.

Over the years, Lightspeed has racked up a few hits to show off to LPs: LivingSocial, app-builder RockYou, DoubleClick and online retailer Bonobos. According to statistics maintained by The Regents of the University of California, (and although it is a little early to gauge), Lightspeed’s most recent fund is currently valued at an investment multiple of 1.96x and the prior fund, a 2005 vintage, its seventh fund, is valued at 1.31x with an IRR of 8.6 percent. Lightspeed’s 2000 fund, in which CalPERS invested, lagged comparatively: it generated an investment multiple of 1.10x.

Some recent successful exits for the firm include IO Turbine, which was sold to Fusion-IO, another Lightspeed company, which went public in 2011. Lately, Lightspeed has backed cloud service Embrane and chore outsourcer TaskRabbit.

peHUB (and, sister pub VCJ) editor Mark Boslet previously reported on Lightspeed’s attempts—when sources were a little more bullish that the firm would match its ’08 haul—in October. peHUB’s earlier piece on Lightspeed also included sources who said the VC was considering spinning off China operations.

Already this year, venture firms appear to be cutting back on fundraising targets—Lightspeed is not the only one. A report earlier this week that did not reference peHUB’s scoop on Foundation Capital from October 2011 stated the VC is now seeking $500 million. peHUB confirmed that this is, in fact, accurate, but that the VC dialed down its expectations in a fundraising environment that, more broadly, has been described as being only friendly to a very select group of top-tier VC shops.