Battery Ventures Staying the route With $950M in New dollars
Battery Ventures, a Boston-based totally firm with branches in the Bay space and Israel, now has $ 950 million in new money to speculate, the corporate announced nowadays. Battery has set up a $ 650 million main fund, Battery Ventures XI, and allocated $ 300 million to its new Battery Ventures XI facet Fund, so they can make investment bets in larger quantities.
Battery had no splashy adjustments in funding techniques to reveal concerning its plans for the new money. For general partner Roger Lee, the good news is that things are staying the same. The restricted companions (LPs) providing the fresh cash are roughly the same group of pension money, endowments, money of cash, and family workplaces that invested in Battery’s two most contemporary earlier money in 2013, which totaled $ 900 million, Lee says.
The investment agency can also be sticking to its routine p.c., elevating new funds each two and a half of to 3 years, Lee says. Battery is staying the route on its combine of worldwide investments, which embrace early-stage seed bets, boom rounds, and personal equity offers. The firm will continue to stack its portfolio with firms comparable to trade-to-industry provider providers and net infrastructure firms, whereas consumer technology outfits will nonetheless make up a minority of its investments.
That breakdown is standard amongst funds, Lee says, given the historical document of investments and winners. “It maps lovely naturally to undertaking services and products,” he says.
for example, Battery points to (February 25, 2016)’s news about one such portfolio firm, Atlanta-primarily based healthcare device agency Brightree. San Diego, CA-primarily based medical tool company ResMed (NYSE: RMD), is acquiring Brightree for $ 800 million.
every other business outfit that Battery backed, San Mateo, CA-based totally advertising and marketing expertise company Marketo (NASDAQ: MKTO), was once among six of its portfolio firms to go public over the last three calendar years. That IPO crew incorporated a shopper e-commerce outfit, though—Boston-based house furniture company Wayfair (NYSE: W). Battery also counted 15 acquisitions of its portfolio companies during the identical three-yr span.
among the goal sectors for Battery are industrial expertise, net-based totally instrument, “large-information” technology, cybersecurity, and cell computing. however the firm will stay lively in shopper internet investing, Lee says. Its prior shopper tech investments embody Groupon and Angie’s list; present portfolio firms embrace last-minute hotel bookings firm lodge Tonight and job looking site Glassdoor.
but in the primary, Battery seems to be for industry-oriented firms with strong fundamentals that may trip out market fluctuations over the long term.
“the consumer world is very tricky to spend money on,” Lee says. every now and then it yields a breakaway winner, he says. “If now not, which you can lose some huge cash.”
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