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Union Square Ventures raising up to $200M for fourth fund

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Fred Wilson

Above: Union Square Ventures partner Fred Wilson

New York City-based Union Square Ventures, investor in Twitter and Zynga, is planning to raise another $150 million to $200 million for a fourth startup fund, reports the Wall Street Journal.

If all goes well with the fund, it would be yet another major win for Union Square, and a reminder of New York’s increasingly prominent role in the startup world. Union Square has also invested in major NYC startups like Foursquare and Tumblr.

Union Square has declined to comment on the report.

There’s little reason to think the firm would have trouble raising more funding. As one investor tells the WSJ, “They just have to call their [investors], and that’s all the marketing that they have to do. … Everyone wants in.”

The firm’s knack for choosing hot properties appears to be going strong: It most recently led a $7.5 million round in the hot social music startup Turntable.fm, which piqued investor interest (not to mention everyone else’s in the tech world) after its May launch.

Unlike some Silicon Valley titans, Union Square has never been tempted by the idea of raising a massive fund, which the WSJ points out can lead to significant management fees. “We will never raise a large fund. We like the small fund model and are completely and totally committed to it,” USV partner Fred Wilson told peHub last year in regards to rumors about its third fund.


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