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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
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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.

IMAGE: Flickr/djevents
Last updated: Jun 29, 2012




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