Bain Capital Ventures has quietly closed its fourth fund with $525 million in capital commitments. The Boston-based firm also has hired John Connolly, former CEO of Institutional Shareholder Services, as an operating partner focused on portfolio company management. A few notes:
Fund: This vehicle comes in a bit larger than its $500 million predecessor (raised in 2007), but below the $750 million cap that BCV had listed in a regulatory filing last February. Unclear if BCV aimed for $750m and failed, or reevaluated due to: (a) The hellish fundraising environment, and (b) A realization that the current VC market has better early-stage opportunities than later-stage ones (BCV is stage-agnostic).
“What we are seeing right now is that later-stage, profitable growth companies are getting expensive very quickly, which means we’re probably looking at a higher mix of early-stage companies,” says BCV managing director Michael Krupka. “We’re also seeing that the public markets have opened up to some degree, and strategic buyers have become more acquisitive.”
I tried to get Krupka to give some insight into a possible LinkedIn IPO, but he wouldn’t bite. Smart man.
Connolly: This hire is reflective of BCV sharing a name, history and office space with buyout giant Bain Capital. The latter began hiring senior portfolio operating pros 15 years ago, and now has nearly 50 of them around the globe.
BCV is dipping its toe into that water, asking Connolly to work intensively with certain of its portfolio companies. The first is EDGAR Online, the publicly-traded financial reporting company that last week sold $12 million worth of convertible stock to BCV. Connolly has joined the EDGAR Online board, and is working on various issues with its CEO. He also is listed as a partner on the new fund.