Silicon Valley venture capital firm Draper Fisher Jurvetson said it has raised $290 million for its first growth fund, to invest in “large opportunity” growth-stage private tech companies.
It will target companies that have completed the initial development stage and are generating revenue, with a potential for exits of $1 billion or so more in value. The company said it has five current portfolio companies: Visto, Raydiance, Kajeet, UUSEE and Solar City.
The fund’s team is led by former AOL Chairman/CEO Barry Schuler; venture capitalist and former Symantec and Healtheon/WebMD executive, Mark Bailey; and DFJ Managing Director John Fisher (representing the entire DFJ partnership.)
It is just the latest company to raise a growth fund, with Sequoia Capital, Redpoint, and Ignition just a few that have all recently raising similar funds.
Here’s more from the statement:
“Today, young companies need to attain more scale than ever to become public companies or to have billion dollar plus exits. This means an entrepreneur generally has to grow revenues to at least $80-100M,” said Barry Schuler, “getting on the fast-track requires building an experienced management team and considering M&A as a tool, something that hasn’t been in the young entrepreneur’s playbook. That is where we intend to help.”
Managing Director Mark Bailey added, “we see an underserved and inefficient segment of the market: the start-up that has created its product and is getting market traction but is still maturing. Typically, this can be a series B or C round that is off-profile for early stage funds, but doesn’t yet have the maturity for which late stage funds are looking,” Managing Director John Fisher stated, “This fund leverages our world-wide network of early stage funds. We now have over 150 investment professionals in 33 cities globally managing approximately $5.7 billion in capital commitments. This global network delivers extensive deal flow to the DFJ Growth Fund, along with the many opportunities that come from outside of the DFJ network.”
The DFJ Growth Fund team includes Director Randy Glein, a DFJ veteran with experience as a VC at Hughes New Ventures, Tribune Ventures and DFJ; operating experience at DIRECTTV, and as an entrepreneur. The team is rounded out with Associate Dan Groen, formerly of TA Associates and Associate Benjamin Stingle, also a DFJ veteran.
The DFJ Growth Fund has invested in five companies to date: Visto, a leading provider of enterprise mobile email applications; Raydiance, creator of the world’s first desktop ultra-short pulse laser; UUSEE, China’s leading provider of IPTV networks; Kajeet, the leading mobile phone service for “tweenagers;” and Solar City, California’s largest provider of residential solar energy solutions.
Draper Fisher Jurvetson is a unique venture capital firm with a global presence through an extensive network of partner funds with offices in 33 cities and approximately $5.7 billion in capital commitments. DFJ’s mission is to identify and provide capital to extraordinary entrepreneurs with world changing aspirations. DFJ has a twenty-two year history of backing revolutionary companies like Hotmail (acquired by MSFT), Skype (acquired by EBAY), Baidu (BIDU), Focus Media (FMCN), Overture (acquired by YHOO), EnerNOC (ENOC), Athena Health (ATHN) and many others. The DFJ Growth Fund web site is: http://www.dfjgrowth.com