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DFJ raises $470m for growth equity fund

6 May 2014

California-based venture capital firm Draper Fisher Jurvetson has raised $470m for its DFJ Growth strategy, in an oversubscribed fundraising.

The vehicle will target private technology companies that are “scaling rapidly” and “poised for category leadership”, the firm said.

Paired with DFJ Venture XI, the $325m early-stage focused fund it announced in February, the firm has raised nearly $800m in fresh capital.

In a blog post, the firm said, “When we formed our DFJ Growth practice in 2006, we predicted a changing landscape for private company investing, in which risk tolerance among public market investors would be reduced going forward, and as such, private companies would require greater maturity and scale to access the public markets.

“We believed this would cause a sea change for how young technology companies are financed, where these companies would stay private longer and would require additional sources of venture capital to fuel their growth as they scale toward maturity and liquidity.

“Our hypothesis from a decade ago has played out largely as we envisioned, where companies typically stay private longer now and raise more private capital to scale their businesses, creating opportunity for later-stage focused funds like DFJ Growth. We believe this trend will continue, and we are excited by the vote of confidence from our existing and new limited partners in supporting our vision, our strategy, our team and our new fund at DFJ Growth.”

DFJ’s prior fund backed companies including including AdMob, Box, SolarCity, SpaceX, Tesla Motors, Tumblr, Twitter and Yammer.

DFJ added, “Our latest DFJ Growth fund is a natural progression of the later-stage investing practice we started almost a decade ago. Our fundamental investment strategy remains the same — to partner with extraordinary entrepreneurs who are changing the world in important ways through innovation, and who are scaling their businesses rapidly and ascending toward category leadership with disruptive, breakout potential.

“We continue to pursue these types of exceptional companies across a broad range of investment themes in the enterprise, consumer and disruptive enabling technology sectors.”

DFJ’s senior investment team remains the same for the new fund, led by the four co-founders of DFJ Growth — John Fisher, Mark Bailey, Randy Glein and Barry Schuler.

The firm has already made five investments from this new DFJ Growth fund, including DataStax, Formlabs, Foursquare, SimpliVity and SpaceX.

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