Enterprise tech-focused investor Emergence has hauled in almost $1bn across two new funds, almost doubling its capital under management.
The firm has closed its latest flagship fund, Emergence Capital Partners VI, on $575m, three years after raising $435m for its predecessor.
It has also closed Emergence Capital Opportunity I on $375m to seal the firm’s first fund primarily targeting follow-on rounds in existing portfolio companies.
Neither fund will be invested by Emergence founder and general partner Jason Green, the firm said, although he will remain active with his existing portfolio.
The new funds will be managed by founder and general partner Gordon Ritter and general partners Kevin Spain, Santi Subotovsky, Joe Floyd, and Jake Saper, each of whom joined the firm as junior investment professionals.
Ritter said, “Culture is critically important to Emergence, so we don’t hire general partners. Instead, we hire talented investment professionals who hold our values, and we help develop their skills through mentorship.
“I am delighted that the majority of the Emergence partnership is now, for the first time, composed of individuals who are not firm founders. This is a testament to the success of our longstanding ‘grow from within’ strategy.”
The two new funds bring Emergence’s total capital raised to $2.3bn across seven funds.
Big wins from Emergence in the past include Zoom, Veeva and Bill.com, and the aggregate market capitalisation of businesses Emergence has backed currently stands at more than $312bn.
Zoom founder and CEO Eric Yuan said, “Emergence was our first Silicon Valley-based institutional investor.
“I deeply value the guidance the Emergence team provides us and the long-term partnership we have. They’re more than just a partner; Emergence is my family.
“I am confident that with this new fund Emergence will support a new generation of founders as they build companies to help us work better and happier.”
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