VantagePoint Venture Partners, the Silicon Valley venture capital firm that invested in social networking company, MySpace, has raised another $1 billion fund to invest in technology companies.
VentureWire reported the news this morning.
In June, some skeptics had suggested the firm was having trouble raising the fund, but Managing Director Alan Salzman responded at the time that the firm had always planned to raise a $1 billion, and was on target.
In addition, VantagePoint is hoping to raise more than $150 million for a fund focused on investments in clean technology companies, Salzman told VentureWire in an interview. The firm has already invested in Tesla, the electric car, and backed several other clean tech companies.
Notable is that VantagePoint’s investment in Intermix, the company that owned social networking company, MySpace, is partly what saved the firm. VantagePoint had raised a whopping $1.6 billion fund in 2000, and suffered an internal rate of return of 0 percent, according to the State of Oregon, which invested in the firm. The zero IRR includes even the 10-fold return of over $150 million VantagePoint enjoyed when Intermix was sold to News Corp. last year, VentureWire notes. Among venture firms, VantagePoint was one of the more stubborn, and resisted reducing the size of its fund after the Internet bubble burst. But its results were apparently good enough to placate investors: After all, VantagePoint’s returns were above the industry average, which was a negative 7.62 percent for funds raised in that year of 2000.
In one interesting twist, Salzman said “outside income” the firm’s partners get from fees and stock options while sitting on the boards of portfolio companies will now be given to VantagePoint’s investors, and not kept by the partners.