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Institutional Venture Partners Raises $1 Billion Fund

The late-stage VC firm that backed Zynga, Twitter, and Dropbox raises its largest fund to date.
IVP General Partner Sandy Miller

With sucessful exits like Zynga and Netflix under its belt and money behind heavy-hitting start-ups Dropbox and Twitter, Institutional Venture Partners is ready to invest more--$1 billion more.

The Menlo Park VC firm announced its fourteenth and largest fund in its 32-year history on Wednesday. The firm raised the $1 billion fund, IVP XIV, over four months and now manages $4 billion in committed capital.

“The IVP team is unique and special--a multi-generational, deep, experienced team of experts," limited partner Rick Hayes of Oak Hill Investment Management said in a press release. "They have proven to be an excellent partner-of-choice for exceptional, high-growth companies.”

With the new fund, the firm plans to follow its usual strategy of investing $10 million to $100 million each in Internet and digital media, enterprise IT, and mobile communications companies. IVP plans to invest in fewer start-ups (10 to 12 per year), yet the firm believes this will be an important strategic move for future fund performance amid a skeptical IPO market.

“In every market, most deals don’t make sense, and that’s true now,” general partner Sandy Miller told The New York Times.

Despite current uncertainty, the firm boasts a solid track record: a 43% internal rate of return over 32 years and 90 IPOs out of more than 300 companies.

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