California-based Arrowroot Capital Management has raised $177m for its third fund.
The oversubscribed fund surpassed its initial $175m target after attracting investments from endowments, foundations, pension funds and alternative asset managers.
It comfortable beats its predecessor, which held a final close on $50m two years ago.
The vehicle will target software companies in the lower mid-market, investing between $5m and $25m in each deal, capitalising on the funding gap between early stage venture capital and larger traditional private equity houses.
Arrowroot founder Matthew Safaii said, “Arrowroot recognises the confidence our partners have placed in us and will continue to work diligently to execute our strategy.”
The firm currently boasts a portfolio of nine companies in the software sector, according to its website.
It recently took part in a series C funding round led by G20 Ventures to invest in cloud-based digital marketing platform Evergage.
Back in August, it led a $16m series C funding round, backing sports sponsorship platform company Hookit.
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