Alta Partners has raised $500 million for its eighth venture fund, according to VentureWire (sub required).

It is one more sign that venture money continues go flood the valley, despite move last week by valley venture firm Sevin Rosen to return its money to investors, saying there is too much money in the market.

VentureWire calls the Alta fund “one of the biggest health care-only pools ever assembled.”

The San Francisco firm closed the fund in mid-September after initially raising $440 million in April. In so doing it surpassed the $425 million target it had set for Alta Partners VIII LP. Return investors supplied the bulk of the capital. They included California Public Employees’ Retirement System, Employees’ Retirement System of Rhode Island, TIAA-CREF and Adams Street Partners

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