Silicon Valley venture capital firm, Redpoint Ventures, has raised a $250 million “Redpoint Omega” fund to invest in companies that are more mature than the start-ups it typically invests in.
This is the firm’s fourth fund since the firm launched in 1999. While the firm hasn’t made any money for investors on any of its previous funds yet, investors apparently recognize that Redpoint started investing at a difficult time, i.e, right when the Internet bubble burst — and so they are cutting the firm some slack.
Indeed, Redpoint may be about ready to start producing some returns. While none of its companies have gone public yet, one investment, Big Band Networks, filed last month to do so. A few of its companies have been acquired, with Topspin and Intermix (owner of MySpace) being among the more significant ones. It has a bunch of private companies that are showing traction, including Calix, Zimbra, Fortinet, Right Media, Kazeon, HomeAway, Entropic and LifeSize, to name several.
Partner Tom Dyal said the firm has made several investments in mature companies from its previous funds, including Intermix, Fortinet and HomeAway. However, 70 percent of Redoint’s capital has been invested in early-stage companies, he said. One reason for raising money specifically for investing in later-stage companies is because more companies are bootstrapping through their early years, and so venture capital firms are often investing later, with larger amounts of capital.
The firm has ten partners, with eight in the valley, and two in Los Angeles. It has an associate in Shanghai.
The firm will remain focused on wireless mobile, interactive media content, Internet services and traditional infrastructure, he said.