Google is increasing the amount of money it allocates to its venture arm, and plans to put up to $300 million to work each year. Every year, Google Ventures already typically funds 40-50 seed-stage deals where it invests $250,000 or less in a company, and perhaps around 15 deals where it invests up to $10 million. Managing Partner Bill Maris said it aims to complete one or two deals annually in the range of $20 million to $50 million. Part of the rationale behind the increase is that Google Ventures, founded in 2009, is a relatively young firm. Some of the companies it backed two or three years ago are now at later stages, potentially requiring larger cash infusions to grow further. The increase to $300 million “puts a lot more wood behind the arrow if we need it,” Maris said. Some of its investments include Nest, a smart-thermostat company; Foundation Medicine, which applies genomic analysis to cancer care; Relay Rides, a carsharing service; and smart-grid company Silver Spring Networks. In 2011, its portfolio company HomeAway raised $216 million in an IPO. The firm’s recent hiring of entrepreneur Kevin Rose as a partner could help attract higher-profile deals.
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Catalyst Health Ventures, a Braintree, Mass.-based venture firm that invests in early-stage deals primarily in the Northeast, is slightly more than halfway to raising its latest fund. The firm has sealed about $33 million en route to a $60 million fund, according to multiple sources. The firm invests in seed rounds to Series C deals. On average, Catalyst, expects to invest about $5 million per company. One of the firm’s portfolio companies, Vortex Medical, was acquired in October by AngioDynamics for $55 million, generating a 7x return on a $3.5 million investment. The firm’s team consists of Managing Partner Josh Phillips; LBO veteran Kevin McCafferty, Robert Vigoda and Darshana Zaveri.
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FTV Capital is in the market fundraising for its latest fund, according to an Oct. 23 regulatory filing. The growth equity shop is looking to collect $500 million for its fourth fund, the filing said. Such a pool would be roughly the same size as FTV Capital’s last fund, which raised $512 million in 2008. M20 Private Fund Advisors, of White Plains, NY, is listed as the placement agent for FTV IV LP, the filing said. FTV Capital, which has offices in San Francisco and New York, was founded in 1998. It was previously known as FTVentures before changing its name in 2008. The firm focuses on business services, financial services, payments and transaction processing, as well as technology. Investments range from $10 million to $75 million, according to the firm’s website. Among its exits, Wright Express announced in September that it would buy Fleet One from LLR Partners and FTV Capital in a $369 million deal. Among its deals, FTV Capital led a $15 million Series C round for Shoutlet in June. In May, the firm led a $50 million round for Utopia.
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Greenspring Associates announced it closed Greenspring Global Partners V L.P., a $356 million venture fund-of-funds. The firm said it found strong participation from existing investors and added a select number of new institutional investors. Up to 25% of the fund’s capital is reserved for direct investments alongside venture and growth equity managers, the firm said. Greenspring Associates was formed in 2000.
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Lerer Ventures said it has raised a $36 million third fund to continue making seed investments in New York and Silicon Valley. The new fund is a step up from the firm’s $25 million second fund, raised in 2011, and will enable Lerer to take larger positions in portfolio companies. The firm said much of its investment strategy will remain largely unchanged. About 60% of its deals are likely to continue being done in New York and most of the remainder in Silicon Valley, where it has struck a partnership with Ron Conway’s firm SV Angel. Lerer has been among the most active New York seed investors and has a portfolio of more than 80 companies. Exits so far include GroupMe, which sold to Skype for an estimated $85 million; Venmo, which sold for $26.5 million to Braintree; and Hipster, acquired by AOL.
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RRE Ventures closed its latest fund, RRE Ventures V L.P., with $230 million in commitments. RRE Ventures is an early-stage venture firm based in New York City. The firm invests across consumer and media sectors, mobile technology, enterprise technology, as well as financial and green technology. Investments include storage company Drobo and the online news site Business Insider.
Compiled by Clancy Nolan
