The future of Focus Ventures
July 6, 2012: 2:09 PM ET
Focus Ventures is still not dead.
FORTUNE -- Focus Ventures is continuing to invest, despite persistent rumors that it plans to wind down operations.
The Palo Alto, Calif.-based firm last raised a fund in early 2006, when it secured $250 million for Focus Ventures III. Venture capital funds typically only make new investments for five years, but this vehicle was structured with a 20% recycling provision which means that it still has a bit of available capital.
Jim Boettcher, a Focus general partner, says that no decisions made been made as to whether or not the firm will attempt to raise a fourth fund.
"I know there are rumors out there about our future, but we really haven't decided yes or no yet," Boettcher explains. "We'd like to get some more liquidity events from our third fund before figuring it out, and I have two new deals that are in the process of closing."
Focus Ventures III featured a 1.15x multiple and a 5.2% internal rate of return (IRR) through March 31, 2012, according to the Oregon Public Employees Retirement Fund.
The firm's investment strategy is to back expansion-stage communications and software companies that previously raised early-stage venture capital. Current portfolio companies include Black Duck Software, Hara Software and Pivot3.
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