What Down Fundraising Market? Insight Partners Bags $2B

Insight Venture Partners revealed Monday it has set up two funds with about $2 billion to manage, marking the latest in a rapid series of announcements from VCs of billion-dollar fundraising totals as the industry as a whole seemingly faces a dearth of willing investors.

Insight Venture Partners Fund VII reeled in $1.5 million in commitments, and $70 million more from affiliates and friend commitments, the firm announced Monday, and Insight Venture Partners Coinvestment Fund II, which tags along on bigger deals, received $450 million in commitments.

Staying in line with Insight’s existing strategy, Fund VII will seek out global software and Internet services deals.

Venture capitalists have struck some major funding commitments with LPs lately, coinciding with a meteoric rise in secondary markets at which many VCs’ assets are listed. Further, venture capital firms have been buying into secondary markets at a growing rate, making new investments in assets they initially missed an opportunity to buy into, or doubling down on deals with the expectation that secondary markets will give investments a continued lift as VCs build toward an IPO and an exit.

“Fund VII demonstrates our ongoing commitment to help companies achieve their strategic and operational goals while building value for customers and investors,” said Jeff Horing, Insight Venture Partners’ co-founder and managing director. “Our investors support our dual approach of providing portfolio companies with financial flexibility and dedicated business expertise. We appreciate their ongoing guidance and their continued commitment to Insight through these investments in Fund VII.”

Investors have been supportive of top-tier VCs this year. Late last week, Bessemer Venture Partners announced it is closing its eighth fund with $1.6 billion, and Accel Partners also revealed it completed two separate fundraisings for about $1.3 billion. Other VC firms are still making the most of investors’ optimism, and more fundraisings are expected to be announced later this year. Among them, biotech and medical device investor Sanderling Ventures is said to be preparing a new fund on the heels of several successful exits in recent months.