Bessemer Declines to Comment on Fundraise
Bessemer Venture Partners is preparing to launch its next billion-dollar fund, according to reports. The early-stage venture capital firm had filed to raise new capital in early August and has reportedly set a $1.6 billion target for its tenth flagship fund. A source familiar with the fundraise confirmed that this amount is "directionally correct," but Bessemer itself declined to comment on the matter.
If Bessemer indeed raises $1.6 billion, it will be the same size as its ninth fund, which closed in 2015 at a similar valuation. This could potentially put Bessemer at odds with the current trend among venture capital firms to raise their largest funds ever. Many firms have opted for massive fundraises in recent years, including General Catalyst’s $1.375 billion fund and Insight Venture Partners’ $6.3 billion fundraise.
A Departure from the SoftBank Effect?
The Japanese telecom giant SoftBank has had a significant impact on the venture capital landscape with its nearly $100 billion Vision Fund, which invests in tech companies directly competing with Silicon Valley heavyweights. This trend of raising massive funds may be seen as an attempt by firms to keep up with SoftBank’s scale and influence.
Bessemer’s approach could be a refreshing departure from this trend. By targeting a fund size similar to its previous flagship fund, Bessemer may be signaling that it values quality over quantity in its investments.
A Busy Year for Bessemer
In addition to securing capital for BVP X, Bessemer has been keeping busy with various initiatives. The firm recently launched the Deep Health Seed Program, a $10 million early-stage seed fund focused on investing in companies using machine learning to solve problems in healthcare. Led by Steve Kraus and Adam Fisher, the fund will invest between $100,000 and $2 million in promising startups.
Notable Exits
Bessemer has seen several notable exits so far this year. DocuSign went public in April, raising over $600 million in the process. Workday also paid $1.55 billion for Adaptive Insights, a financial planning software startup that was another Bessemer portfolio company.
A Strong Portfolio
Bessemer’s current portfolio includes a diverse range of successful startups, including Pinterest, Betterment, Rocket Lab, Toast, PagerDuty, ServiceTitan, Fiverr, and many others. The firm has established itself as a go-to partner for early-stage companies in the tech industry.
Related Topics
- Bessemer Venture Partners
- Startups
- Venture Capital
Conclusion
Bessemer’s approach to raising capital may be seen as a refreshing departure from the current trend of massive fundraises. By targeting a similar fund size to its previous flagship fund, Bessemer may be prioritizing quality over quantity in its investments. As the firm continues to navigate the ever-changing landscape of venture capital, one thing is clear: Bessemer remains a significant player in the tech industry.
Table of Contents
- Introduction
- Bessemer Declines to Comment on Fundraise
- A Departure from the SoftBank Effect?
- A Busy Year for Bessemer
- Notable Exits
- A Strong Portfolio
- Conclusion
References
- "Bessemer Venture Partners Gearing Up for Next Billion-Dollar Fund" by Kate Clark
- "TechCrunch Daily News"
- "Startups Weekly"
- "Related Featured Meta execs obsessed over beating OpenAI’s GPT-4 internally, court filings reveal"
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