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IVP raises $1 billion for new tech fund

June 28, 2012: 11:07 AM ET

Twitter backer raises largest fund to date.

FORTUNE -- Institutional Venture Partners, a later-stage VC firm focused on the tech market, today announced that it has raised $1 billion for its fourteenth fund. This comes on the heels of a $750 million vehicle IVP raised just two years ago.

No real surprise here, as the $1 billion target had been widely reported. And I guess the size increase is to help IVP go three years between funds, although partner Steve Harrick acknowledges that there has been some "softening" of later-stage valuations based, in part, on the lackluster public performance of companies like Facebook and (IVP portfolio company) Zynga. If such softening persists, perhaps IVP won't be able to put its $1 billion to work as easily.

Or, more likely, it will focus a bit more on the enterprise side than the consumer side, given all the cloud chaos and mobile software needs. IVP spent a bit more than half of its $750 million fund on consumer, but Harrick acknowledges that it may well flip this time around.

Finally, a quote from Harrick on why the firm typically doesn't participate in Series G-type pre-IPO rounds very often: "We do not collect logos, and our belief is that IPO arbitrage is a very difficult way to play this game."

IVP portfolio companies include Twitter, LegalZoom and Buddy Media (being acquired by SalesForce for $689m).

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Dan Primack
Dan Primack
Senior Editor, Fortune

Dan Primack joined Fortune.com in September 2010 to cover deals and dealmakers, from Wall Street to Sand Hill Road. Previously, Dan was an editor-at-large with Thomson Reuters, where he launched both peHUB.com and the peHUB Wire email service. In a past journalistic life, Dan ran a community paper in Roxbury, Massachusetts. He currently lives just outside of Boston.

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