San Francisco-based venture capital firm YL Ventures has closed its “dramatically oversubscribed” second fund on $27.5m, beating its initial target of $25m.
The firm said the fund was significantly oversubscribed, promting it to raise the fundraising limit by 10 per cent. However, YL decided that “restraining the fund’s size was important in order to adhere to the firm’s criteria for investment size and the rates of return it targets.”
The new fund will make seed-stage investments of $1m to $2m in software-as-a-service startups with “deep proprietary technology.” Its focus areas will include cloud computing, big data, cyber security, DevOps, e-commerce infrastructure and mobile technologies.
YL Ventures is focused on Israeli companies, but it said it will consider other companies that “impeccably meet its investment criteria.”
YL Ventures managing partner Yoav Andrew Leitersdorf said, “YL Ventures has always been about providing capital, relationships and insights to Internet technology entrepreneurs, with a particular focus on Israeli startups that exhibit strong engineering, capital efficiency and Software-as-a-Service business models.
“YLV II allows us to continue along our path, and we are deeply grateful to our Limited Partners for the enthusiastic and consistent backing they provide us.”
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