IVP, some of the unique late-stage venture capital corporations, is pronouncing its 16th fund. And at $1.five billion, it’s the most important but. This brings the crowd’s general dedicated capital to $7 billion.
With a slew of departures this yr, together with Snap, AppDynamics, MuleSoft and Yext, and a historic IRR of 43%, it used to be sufficient to persuade LPs that they’re in a position for a little bit extra money. The ultimate fund raised used to be $1.four billion in 2015.
IVP’s center of attention contains each shopper and enterprise-facing corporations, and the crew expects to proceed to put money into about 12-14 fast-growing startups in step with yr. Checks shall be between $10 million and $100 million.
There are “a lot of attention-grabbing corporations which are on their manner up,” mentioned Eric Liaw, normal spouse at IVP. The crew is “spending a lot of time trying to identify the next leaders.”
Right now, he’s Casper mattresses, Glossier’s make-up and Jessica Alba-founded Honest Company, within the trade class. They even have gif platform Giphy of their portfolio and they’re on the lookout for extra alternatives to put money into monetary generation.
IVP generally takes board seats and considers itself a hands-on funding crew. They imagine that is in part what’s contributed to the exits. IVP has invested in over 100 corporations that experience long gone public since it all started making an investment in 1980.
But now not the whole lot has panned out neatly, as is anticipated in VC. One Kings Lane offered for less than buyers was hoping for they usually’re additionally in corporations that experience confronted vital cultural issues like Zenefits and SoFi.
Yet after a painfully gradual 2016 which he says used to be a occupation low, Liaw believes that “the environment right now is healthy.” He’s positive that the approaching years shall be a greater time for venture making an investment.
He expects to collaborate with the most important venture fund, SoftBank, which he hopes will make it more uncomplicated for firms to lift capital. He’s now not too anxious about this doubtlessly using up valuations or delaying IPOs as a result of he’s taking a long-term view.
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