MENLO PARK, Calif. – Delphi Ventures at the end of October was set to begin raising Delphi Ventures V, targeted at $175 million to $200 million. The fund is expected to hold a first and final close in the first quarter of next year, said James Bochnowski, a general partner at the firm.
Delphi Ventures typically backs early-stage health-care and Internet companies in the Western United States, although the firm is willing to make opportunistic investments throughout the United States and Canada.
The firm plans to back about 40 companies with its latest vehicle, with investments ranging between $3 million and $5 million over several rounds of financing. Individual investments might increase slightly for Fund V, Bochnowski said. While Delphi Ventures is usually the lead investor in its deals, it rarely invests alone.
The firm expects the $125 million Delphi Ventures IV to be fully invested or committed by year’s end in about 30 companies, and at press time, more than $100 million of the fund already was invested or committed, Bochnowski said. The $80 million Delphi Ventures III, which held a final close in July 1995, has backed 28 companies.
The firm’s limited partners typically are foundations and university endowments including Stanford Management Co., Massachusetts Institute of Technology, Duke University, Dartmouth College, University of Virginia, Emory University and the Rockefeller Foundation.
“We expect strong support from our prior investors,” said Donald Lothrop, a general partner at the firm. And while the firm contacts its current L.P.s first, it always tries to make room for some new comers, Bochnowski said.
The firm’s three general partners, David Douglass, Bochnowski and Lothrop, will be joined by General Partner Kevin Roberg in time to invest Fund V. Meanwhile, Douglas Roeder also will join as a venture partner.