500 Startups raises more than $25m for third fund


50dollarsVenture investor 500 Startups has secured more than a quarter of its third fund’s $100m target.

500 Startups III, which was launched in October last year, has raised $26.86m from 38 investors, the firm revealed in a document filed with US securities regulators.

The firm has partnered with crowdfunding platform SeedInvest to raise the fund, taking advantage of the new rules that permit general solicitation for investment funds.

Founding partner Dave McClure said, “500 Startups is already widely recognized by the entrepreneur and investor community as one of the most innovative VC funds in the world.

“Making this change in our fundraising process allows us to reach a much broader audience of investors than ever before.”

The third fund was launched shortly after the firm closed its second fund on $44.1m.

The second fund followed 500 Startups’ first vehicle, which was closed on $29.6m in 2011.

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