HomeUSAGroup 11 Receives $20M for Second Fund Holdings

Group 11 Receives $20M for Second Fund Holdings

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Group 11, a Los Angeles, CA-based venture capital firm, received a $20M secondary investment from StepStone Group and Industry Ventures.

With this deal, closed directly, without the involvement of any placement agent or investment bank, StepStone and Industry Ventures acquired 12% of Group 11’s second fund.  

The agreement enabled investors in Group 11’s second fund (2015 vintage) to realize their positions partially or entirely. Through this deal, participating Group 11 investors received a ~3X net cash on cash return, representing a 20% net IRR on their investment.

Founded in 2012 by single General Partner Dovi Frances, Group 11 invests in entrepreneurs seeking to innovate the financial services industry. The firm is an early investor in some of Silicon Valley’s most prominent financial technology companies and currently houses a stable of five unicorns—companies with valuations greater than $1BN. The cumulative value of Group 11’s portfolio stands at approximately $1.2BN, across six funds.

Group 11’s second fund includes investments in Tipalti, which raised $270M at an $8.3BN valuation in Q4 2021; Navan, which raised $300M at a $9.3BN valuation in Q2 2022; Sunbit, which raised $130M at a $1.1BN valuation in Q2 2021, to name a few.

Since its inception in 2012, the firm has deployed over $580m across six funds. Beyond the companies above, Group 11 backed Next Insurance, HomeLight, Masterschool, Healthee, Dream, and BridgeWise.

The firm finalized a $200M raise for its Fund V at the end of 2021 and will soon announce its Fund VI. 

Commenting on the deal, Dovi Frances, Founding Partner at Group 11, said: “We are excited to partner with both Industry Ventures and StepStone on this transaction. This is the second deal we have executed with StepStone since 2022 and this is the first deal with Industry Ventures. We are confident that this is just the beginning of a wonderful and fruitful partnership with both of these prestigious investors, and are delighted to continue delivering for our Limited Partners proving, yet again, that Group 11 can generate liquidity and outsized returns to our Limited Partners, even amidst the market corrections we’ve seen in the past couple of years.”

VCWire

11/12/2023