Industry Ventures LLC, a investment firm for venture capital, announced the closing of Industry Ventures Secondary VII, a $425 million secondary fund focused on providing liquidity alternatives for venture capital investments. Additionally, the firm closed a $200 million Special Opportunities Fund which enables the firm to invest in larger transactions. These new funds bring total capital under management to more than $1.7 billion and establish the firm as the largest dedicated liquidity provider for venture capital investments.
Secondary VII is Industry Ventures’ largest fund raised to date, and along with the Special Opportunities Fund it will enable the firm to continue to provide a broad range of investment options to address liquidity needs for employees, general partners, limited partners, and founders across the lifecycle of a venture capital investment. As a leading pioneer in the VC secondary market, the firm’s 12-year track record contains investments in over 120 private venture backed companies and over 140 venture capital partnerships. Secondary VII’s investor base includes 30 institutions representing government and corporate pension funds, insurance companies, endowments and foundations.
“We are thrilled with the continued support and participation of our investors in Secondary VII. The VC market continues to evolve and there is an acceleration in shareholders looking for liquidity prior to a M&A or IPO exit. We now have the largest capital base and team in the U.S. focused exclusively on solving liquidity issues for the venture capital ecosystem. Whether it’s a founder or employee looking for liquidity, a VC fund at the end of its ten year term or a corporation looking to exit their venture capital portfolio, we offer a number of flexible structures to enable direct equity and partnership interest sales,” said Hans Swildens, Managing Director and Founder of Industry Ventures.
With Secondary VII, the firm will continue to invest in leading private companies and venture capital funds. Founders, angel investors, financial institutions, hedge funds, venture capital firms, corporate venture funds and family offices are among the parties seeking investment structures that align risk/reward profiles for diverse circumstances.
“Industry has really established itself as a go-to partner for founders, management teams and VCs facing liquidity issues of every kind,” said Greg Gottesman, Managing Director of Madrona Venture Group. “It’s not one-size-fits-all with them. They look at your individual situation and try to figure out how to create a win-win across stakeholders. This new fund is great news for Industry and great news for our ecosystem.”
“Industry Ventures’ approach to structuring win-win liquidity options for existing shareholders of private, VC-backed companies reflects their leadership position and sophisticated understanding of secondary market dynamics built through over a decade of experience meeting our needs,” said Trevor Wright, co-founder of Vitrue (acquired by Oracle).
“We have a long-standing relationship with Industry Ventures as a limited partner, secondary and co-investor, providing lots of value along the way. They are trusted partners and have a deep understanding of the VC ecosystem,” said Larry Marcus, Walden Venture Capital.
Industry Ventures led secondary investments in a number of market leading companies that realized exits such as Alibaba Group, Ancestry.com (ACOM), Broadsoft (BSFT), Facebook (FB), Splunk (SPLK), and Vitrue (acquired). Additionally, recent investments include Good Technology, Harvest Power, OnDeck Capital, Practice Fusion, Sojern, and Trustwave.
Representative secondary portfolio transactions included purchasing direct investments and limited partnership interests from firms such as EDS Ventures, Enron, Hollinger Capital, and Washington Mutual.