Insight Venture Partners Raises $1B

Insight Venture Partners has raised a new mountain of money to invest in both software and Internet deals.

The 16-year-old, New York-based firm has closed on at least $1.05 billion from investors, including one lump of $325.8 million and another that totals $725.1 million, according to two regulatory filings.

Whether the funds will be managed separately or as one fund remains to be seen. Insight has not yet responded to requests for comment.

Presumably, though, much of that money has come from existing investors, such as Stockholm-based Skandia Insurance Co. When Insight raised its last, $1.25 billion fund, in 2007, it said that a full 80% of its capital came from existing investors.

One of the regulatory filings indicate that the date of the first “sale” of an LP interest in Insight was on Dec. 20.

The firm’s investors have had plenty of reasons to feel optimistic about its investment prospects. Insight has seen three of its portfolio companies go public since 2009, including Solarwinds, whose software is used to manage IT environments, Medidata Solutions, which steamlines clinical development for biotech firms, and the digital advertising company MediaMind Technologies.

More exciting to investors, undoubtedly, is Insight’s stake in Twitter, which the firm nabbed as part of a fall 2009 financing that included Benchmark Capital and Spark Capital, among others.

More exciting to investors, undoubtedly, is Insight’s stake in Twitter, which the firm nabbed as part of a fall 2009 financing that included Benchmark Capital and Spark Capital

It’s unclear whether Insight also participated in Twitter’s newest, $200 million round, which closed in January. Kleiner Perkins Caufield & Byers led the recent funding of the microblogging site; other investors in the round—which brought Twitter’s total funding to date to $360 million—were not disclosed.

Insight was co-founded in 1995 by Jeff Horing and Jerry Murdock and has enjoyed a number of wins over the years. Horing and Murdock individually invested in PhotoBucket, a photo-sharing service that raised just $13.5 million over two rounds and sold to Fox Interactive Media for $300 million in 2007.

The firm—which invests in early and late stage deals as a lone investor and in syndicates—has shown a penchant for outsize bets. Among them is an investment is the textbook rental company Chegg, which has raised $219 million since its founding five years ago. Kleiner Perkins, Foundation Capital and Gabriel Venture Partners are among the other investors of Chegg.

Insight has also struck deals overseas. In addition to backing Parallels, a Swiss virtualization software company that’s also raised funding from Bessemer Venture Partners and Intel Capital, Horing recently said that Insight is increasingly interested in Brazil.

It’s more than just talk. Last fall, Insight gave an undisclosed amount of growth stage financing to Mentez, a Miami-based company that has flourished in Brazil by focusing its games development on Google’s Orkut social networking service. Horing also recently wrapped up a still-undisclosed e-commerce deal outside São Paulo.

One of Insight’s recent investments includes Kony Solutions, which helps corporate customers design, deploy and manage their mobile offerings. The company recently announced a $19.1 million Series A funding from Insight.