Industry Ventures, a San Francisco, CA-based investment firm focused on private technology investments, closed two funds totalling $1.7 billion.
- Industry Ventures Secondary X, at over $1.45 billion of new commitments. Secondary X will seek minority investments in leading later-stage venture-backed companies through flexible investment structures, including direct secondaries, secondary LP investments, continuation funds, and other special situations.
- Industry Ventures Tech Buyout II with over $260 million of new capital commitments across the Fund and affiliated entities. It is a hybrid fund focusing on small software company buyouts and emerging software buyout funds.
The Funds’ investor bases include leading institutions representing public and corporate pension funds, endowments, charitable foundations, financial institutions, health delivery networks and family offices, as well as sizable commitments from the general partners.
The two new funds bring the firm’s total committed capital under management to over $7 billion.
Commenting on the announcement, Hans Swildens, CEO and Founder of Industry Ventures, said: “We’re especially grateful for the strong support both Funds received from existing and new limited partners alike given the difficult fund-raising environment that we are in. Overall, the venture market needs more liquidity, and our investment team is hard at work helping shareholders and limited partners generate cash from their investments.“
Justin Burden, head of the Secondary team, added: “The closing of our tenth secondary fund is a tremendous achievement and milestone for Industry Ventures,” said “Over our 20-year history we have invested across multiple market cycles, and this new fund enables our team to continue to identify and gain exposure to attractive secondary opportunities for our investors.“
Lindsay Sharma, head of the Tech Buyout team, commented, “The Tech Buyout Fund is a logical extension of our investment platform and a value-add to both our venture capital fund managers and company management teams. The current lack of liquidity in the venture ecosystem is generating notable buyout demand. We are excited to continue leveraging our unique position in the market to generate proprietary deal flow, access leading technology-focused buyout opportunities, and deepen our collaboration with our small fund managers.“
The firm is headquartered in San Francisco, with additional offices in Washington, DC, and London. Industry has completed over 600 secondary investments in its 20-year history. These investments include over 400 secondary venture capital fund limited partnership interests and 170 direct secondary company share purchases, enabling exposure to over 5,500 venture capital funded companies. The largest exits to date for the secondary strategy result from investments in Uber, Alibaba, ZipRecruiter, Nubank, LifeLock, Marqeta, Roblox, Trustwave, Twitter, and Upwork. Since starting this strategy five years ago, the firm has invested in 14 direct software buyouts and over 14 emerging buyout funds.