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Good week for startups: Two huge VC firms collectively raise over $500M

VC Funds
Image Credit: Gorilla via Shutterstock

VC Funds

If your startup is about to go public, Facebook’s less than pleasing debut is probably raining on your parade. But for those still looking for funding, it’s been a good week and an even better month.

Today, venture capital firm True Ventures announced it closed $205 million for a new fund that took only eight weeks to close, according to the New York Times. The firm plans to use the new fund to invest up to $3 million in companies over the next three to four years. True Venture, which has previously invested in Automattic and MakerBot Industries, has raised a total of $600 million across all of its funds.

The news comes just a day after Madrona Venture Group raised $300 million for a new fund, its fifth and largest to date. The firm, which previously made early investments in Amazon, Isilon Systems, and Sharebuilder, said it plans to use money from the latest fund to invest in about 30 companies over the next four years. According to GeekWire, Madrona’s focus will remain on funding early stage companies in the pacific northwest region and within the areas of consumer Internet, enterprise software, digital media, online advertising, mobile, and cloud computing.

If you include the new $525 million fund raised by Kleiner Perkins Caufield & Byers, that’s well over a billion dollars set aside for the worthy startups in the last month alone.

That’s not to say the world of venture capital is entirely sunny. As the Times points out, overall funding raised was down 35 percent to $4.9 billion in the first quarter of 2012 compared to the same period last year.

Image via Gorilla /Shutterstock