WOODSIDE/IRVINE, Calif. – Crosspoint Venture Partners was slated to launch its sixth fund in late March and hoped for a first and final close on $150 million in April, said Managing Partner John Mumford.
Crosspoint Venture Partners 1999 L.P., a follow-up to 1997’s $140 million fund, will target $150 million. The previous vehicle is fully invested, having backed 25 start-ups, Mr. Mumford said.
The seed- and early-stage firm traditionally has backed communications and networking equipment companies in the Western United States, but Crosspoint’s focus has shifted more toward digital communications services, e-business services and software, the managing partner said.
The 1999 fund is expected to make investments of $5 million to $8 million per company, with $500,000 to $2.5 million as a typical first round.
Mr. Mumford initially said the new fund could have a $175 million target (VCJ, March, page 46), but Crosspoint settled on a slightly smaller goal because the firm was not in need of that much capital, he explained.
Crosspoint’s last two funds were raised exclusively from previous limited partners, which were mostly university endowments and foundations. Mr. Mumford was uncertain whether the firm would look beyond returning investors for the new fund.
He said the vehicle’s terms were standard and would not characterize returns on previous funds, except to say, “Everybody’s pretty happy.”
Bernard Gordon, director of the Oberlin College investment office, said the school’s endowment had backed earlier Crosspoint vehicles, but Oberlin had not decided by press time whether to commit to the new vehicle.