Fund Briefs, April 2010

Battery Ventures Closes Ninth Fund

Battery Ventures has officially wrapped up its ninth fund with $750 million in total commitments, matching the amount it raised for its eighth fund in 2007.

The new fund brings Battery’s total capital under management to nearly $4 Billion. Battery, founded in 1983, invests out of offices in Waltham, Mass., Menlo Park, Calif., and Herzliya, Israel.

“In a highly selective investment environment where limited partners are winnowing their managers, Battery continues to garner strong support from investors,” Michael W. Taylor, Managing Director at HarbourVest Partners, said in a prepared statement. “They have provided consistent returns, in both up markets and down, and are true partners with their LPs. Battery clearly laid out their fund raising timeline and worked collaboratively and transparently with investors to bring the fund to a close right on time. We have the utmost confidence in the investment team and look forward to continuing this relationship.”

Battery says that about 85% of the capital for its ninth fund came from returning LPs and 15% new investors. The firm did not disclose the names of any of its LPs, but noted that they are private & public pensions, endowments and foundations, fund of funds managers, and financial services firms including banks and insurance companies.

The ninth fund has 10 general partners: Neeraj Agrawal, Michael Brown, Tom Crotty, Sunil Dhaliwal, Rick Frisbie, Morgan Jones, Ken Lawler, Roger Lee, Dave Tabors and Scott Tobin. —Dan PrimackHarbourVest Nears Close on Cleantech FoF

Boston-based HarbourVest Partners is preparing to hold a final close on its new cleantech fund. The firm has raised $139 million in commitments to date and is waiting to hear about one or two more potential commitments before holding a final close, a source familiar with the situation said early last month.

HarbourVest launched fund-raising just over one year ago with a target of $150 million and a hard cap of $250 million. The management company, called HarbourVest Cleantech Associates, was formed in April 2008.

HarbourVest declined to comment. —Erin GriffithETF Is Now SeventySix

ETF Venture Funds, a West Conshohocken, Penn.-based firm that makes early stage investments, changed its name last month to SeventySix Capital.

Wayne Kimmel, managing partner of the firm, said in a prepared release that while the name has changed, the firm’s focus will remain the same. Kimmel told the Philadelphia Inquirer that the change was partly a result of wanting to avoid confusion with exchange-traded stock.

The firm, founded in 1999, has invested in MeetMoi, a New York-based location-based mobile dating service; Xtify Inc., a New York-based provider of location-based advanced programming interface for mobile devices; and SeamlessWeb, a New York-based provider of meal and catering procurement services, according to the SeventySix website.

In addition to Kimmel, Tony Bifano serves as the only other managing partner. The partners invest from a $25 million fund raised in 2007 from “wealthy individuals,” according to the firm. —Alastair GoldfisherIVP Eyes 13th Fund

Institutional Venture Partners has begun raising its 13th fund, which has a $600 million target, according to Private Equity Insider.

The Menlo Park, Calif.-based firm raised $600 million for Institutional Venture Partners XII, which closed in 2007. IVP is anticipating a brisk fund-raising with a possible final close by mid-year, PEI reported.

OrbiMed Closes Fourth Fund

OrbiMed Advisors, a health care-focused venture capital firm based in New York, has closed Caduceus Private Investments IV with $550 million in commitments. The firm raised $530 million for its third fund, which closed in 2006.

OrbiMed took less than six months to raise the fund and approximately 80% of the fund’s capital came from returning investors, including pension plans, endowments, foundations and sovereign wealth funds.

Like its predecessor funds, Caduceus Private Investments IV will invest in venture stage biopharmaceutical and medical device companies located in North America and Europe and. OrbiMed told VCJ that it plans on allocating 10% to 15% of the fund to Europe. It will be invested over three to five years, with individual investments ranging from $10 million to $50 million.

“The fund-raising environment was a challenge because investors were still scared last summer,” says Michael Sheffery, a founding general partner of Orbimed. “We beat our target, but we wanted to be careful because of the market we were in. We saw lots of other funds banging their heads against walls, but it turned out there was demand for our fund.” —Aimee Donnellan

Foundation Energy Seeks $100M

Foundation Energy Co. is seeking $100 million in capital for its third fund, according to a regulatory filing. The Dallas-based firm has raised $23 million in commitments to date.

WFD Raises $116M

WFD Ventures, a New York-based firm focused on medical device startups, has secured $116 million in capital commitments for its second fund, according to a regulatory filing.

Harbor Pacific Holds First Close

Harbor Pacific Capital, a Los Altos, Calif.-based VC firm focused on tech companies in the United States and Asia, has held a $32.8 million first close on its debut fund, according to a regulatory filing.

New Canadian Firm Launches

Mantella Venture Partners has formed a $20 million fund to focus on early stage technology companies in Toronto, Ontario. The fund is a joint venture between tech accelerator Basecamp Labs and real estate developer Mantella Corp.

New Texas Firm Targets Health Startups

TEXO Ventures has launched in Austin, Texas, to make seed and early stage investments of up to $2 million in health care companies. The firm’s founders are Philip Sanger, Jerry DeVries and Randall Crowder.

Joe Cunningham, managing director at Sante Ventures, said in a prepared release that he knows and has worked alongside the founders of TEXO for many years. “They have a strong track record of identifying and growing successful health care companies,” he said in the statement.