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TCV closes record $ 4 billion fund to invest in e-commerce, fintech, edtech, travel and more – TechCrunch

The pandemic has brought economic setbacks for many people and industries, but the capital swirling around the tech world continues to roar. In the latest development, TCV – the legendary venture capital firm behind Airbnb, Spotify, Peloton and Facebook – closed a record $ 4 billion for its latest fund.

It’s not only the company’s biggest fund to date, but it also shows how much the tech industry is accelerating in terms of capital and how attracting technology is. In 25 years of operation (a milestone reached in 2020), TCV has invested $ 14 billion in hundreds of startups. This latest fund of $ 4 billion raised in a few months represents nearly 30% of this figure.

(It’s also more than the original target company, which was $ 3.25 billion.)

Parter John Doran told TechCrunch his plan would be to use the money to continue supporting existing portfolio companies, as well as making new bets, both in areas that have proven to be very good winners. over the past year – e-commerce, education, and tools to enable working in the cloud, for example – but also investments in areas that may not be doing so well at the moment, but TCV believes it ‘they will come back, like the trips.

“We have to take a long-term view,” he said in an interview. “These are great founders and CEOs, and where those in areas like travel, you’ll always see startups take turns being funded. Moreover, who will be in the best position to grow and benefit from a now more digital world? It’s a huge long-term opportunity. “

As with other major events, the closing of a venture capital fund may not be inherently interesting news in itself, but it is a meaningful indicator that indicates the level of confidence, interest and activity in the early stages of the funding process. This, in turn, has a direct ripple effect for startups and, subsequently, the tech industry as a whole.

In the case of the TCV XI, as we know, this is a sign of strength in the market – it is $ 1 billion more than its previous fund, which closed before the pandemic in 2019 – but also an approval from some of the less traditional and practical processes that have become the norm in many of our lives.

Notably, the fundraising (and closing) was all done virtually over the past year, Julia Roux, the company’s head of investor relations, told TechCrunch, from a mix of LPs. and new LPs. Going virtual is also, in many cases, the route TCV (and other VCs) have taken to close deals over the past year, which now appears to be here to stay.

TCV has been very active over the past year, not only with private investments in startups, but also seeing one of its most successful startups go public. Airbnb boldly launched an IPO in December, following a year that saw its business of providing accommodation and other services to travelers come to a halt.

The IPO was an example of the type of longer-term investment the company is keen to make (and has a lot of funds to do now) despite current market conditions. Doran pointed out that TCV remains a “big believer in the history of Airbnb”, investing in more of the company’s stock during the IPO.

Other significant investments this year have included many activities in commerce and fintech – including Mollie (raised $ 106 million), Spryker ($ 130 million), Revolut ($ 500 million), Klarna ($ 650 million) ($), Nubank ($ 400 million) and Mambu ($ 135 million) – and Strava ($ 110 million). (Note how many of those tours were outside the United States: almost all. The company says it currently manages some $ 4 billion outside the United States.)

Recent releases include AxiomSL, Genesys, Cradlepoint, and Silver Peak.

“We are honored by the continued support from new and returning investors, which has enabled us to raise a fund of record size,” Jay Hoag, founding partner of TCV, said in a statement. “Equally important, we are honored by all of the great entrepreneurs we have worked with over the past 25 years, because their vision and relentless execution have been our foundation. We look forward to supporting entrepreneurs with our new fund that we believe will become the next generation of iconic companies, in this incredibly fertile tech industry.

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