Emergence racks up $950m for two funds

Emergence Capital Partners has raised $950 million across two funds.

Emergence Capital Partners has raised $950 million across two funds. The venture firm has closed its early-stage venture fund Emergence Capital Partners VI at $575 million. And Emergence has raised $375 million for Emergence Capital Opportunity I, an opportunity fund.

PRESS RELEASE

May 5, 2021, San Mateo, California — Emergence, the leading venture capital firm focused on enterprise technology companies, has closed Emergence Capital Partners (ECP) VI, a $575 million fund devoted to early-stage investments. In addition, the firm has closed Emergence Capital Opportunity I, a $375 million opportunity fund. This is the first time that Emergence has raised a fund of its kind with the goal to invest primarily in follow-on rounds in existing portfolio companies.

The two new funds bring Emergence’s total capital raised to $2.3 billion across seven funds. The aggregate market capitalization of the public companies Emergence has partnered with is currently over $312 billion. The firm’s early investments in market leaders including Zoom, Veeva, and Bill.com are among the best-returning venture investments of all time.
The new funds will be managed by Founder and General Partner Gordon Ritter and General Partners Kevin Spain, Santi Subotovsky, Joe Floyd, and Jake Saper, each of whom joined the firm as junior investment professionals. Another key team member, Carlotta “Lotti” Siniscalco, joined the firm in 2018 and was recently promoted to Principal. Emergence Founder and General Partner Jason Green will remain active with his existing portfolio, but will not be making new investments out of the new funds.

“Culture is critically important to Emergence, so we don’t hire general partners. Instead, we hire talented investment professionals who hold our values, and we help develop their skills through mentorship,” said Emergence Founder and General Partner Gordon Ritter. “I’m delighted that the majority of the Emergence partnership is now, for the first time, composed of individuals who are not firm founders. This is a testament to the success of our longstanding ‘grow from within’ strategy.”

Since its founding in 2003, Emergence has distinguished itself with its focused strategy. The decision to remain dedicated to early-stage enterprise technology investing is rooted in two fundamental beliefs: First, that deeply understanding enterprise technology is critical to identifying the best companies to partner with, and second, that helping enterprise technology companies accelerate their success requires real domain expertise.

As a result of being focused, Emergence has consistently been ahead of the curve when it comes to trends in enterprise technology. The firm’s theses in Coaching Networks, Deskless Workforce, Deep Collaboration, and Industry Cloud are widely recognized and define several of the most interesting current areas of opportunity for founders in the enterprise market. Emergence is continuously evaluating new investment theses based on technology trends and evolving customer needs.

Emergence’s goal is to earn the right to be called an enterprise founder’s “Most important Partner.” Being dedicated to this market means the partners at the firm have unparalleled know-how when it comes to scaling enterprise technology companies. However, that knowledge is only useful if there is time to share it with the companies Emergence works with. To that end, each partner at Emergence makes on average one new investment per year. This keeps the team’s board load modest and ensures each partner can work closely with founders on a wide range of activities that help accelerate their success.

“Emergence was our first Silicon Valley-based institutional investor. I deeply value the guidance the Emergence team provides us and the long-term partnership we have. They’re more than just a partner; Emergence is my family,” said Eric Yuan, Founder & CEO, Zoom. “I am confident that with this new fund Emergence will support a new generation of founders as they build companies to help us work better and happier.”

Emergence strives to have a positive impact beyond Silicon Valley. The firm chooses to work with limited partners who support positive change in the world and bring deeper meaning to the work the Emergence team does each day. Emergence is humbled to have the vast majority of its investor base make meaningful contributions to important areas such as racial, ethnic, and gender justice; climate science; education; and medical research.

“One of our core values at Emergence is ‘Win Big in the Long Run.’ This applies as much to our investor base as it does to our day-to-day work,” said Emergence General Partner Kevin Spain. “We are honored to have incredible institutions as limited partners that apply our returns to efforts that help people and our planet.”

About Emergence
Emergence is the leading venture capital firm focused on early-stage enterprise software companies. Its mission is to be the most important partner to the companies that are changing the way the world works. The firm’s investments’ current market capitalization is over $312B and includes companies such as Zoom (ZM), Veeva Systems (VEEV), Box (BOX), Bill.com (BILL), SuccessFactors (SFSF, acquired by SAP), Yammer (acquired by Microsoft), ServiceMax (acquired by GE) and Intacct (acquired by Sage). For more information on Emergence, visit http://www.emcap.comand follow @emergencecap.