March Capital has raised $650 million for its fourth fund – its largest to date.
Based in Santa Monica, California, the firm did not disclose the names of limited partners in the new fund, which came in about $50 million above target. March Capital declared its intent to raise Fund IV on November 4, 2021, noting in a regulatory filing that it hadn’t had a first sale yet. In a follow-up SEC filing on December 6, 2022, it said it had raised about $585 million from 169 investors.
“As endowments, sovereign wealth funds and family offices continue to be more selective in their allocation to venture and growth capital, we are thrilled to increase the size of our fund and are deeply appreciative of the support of both our new and existing investors,” firm co-founder and managing partner Jamie Montgomery said in a statement.
March Capital raised $240 million for its debut fund in 2016, $300 million for Fund II in 2019 and $450 million for Fund III in 2021.
The firm said it “sees enormous opportunity in the use of Artificial Intelligence for intelligent business applications, and the firm has extensive experience in investing and building companies with AI at their core. Some of these companies include CrowdStrike, Expel, Forter, ASAPP, Uniphore, ThoughtSpot, Nile and Generate Biomedicines. With Fund IV, the firm anticipates selectively investing further in a select number of these companies and making 12-15 new meaningful investments.”
Sumant Mandal, co-founder and managing partner, wrote on LinkedIn: “Even as world economies slow down, and valuations reset, the pace of enterprise digitization through AI-driven process automation and intelligent business decision making continues to accelerate. Our strategy of focusing on mission-critical enterprise software companies has proven to be effective through any economic cycle, and we continue to be strong believers in secular technology trends such as AI, cloud adoption within the enterprise, distributed computing frameworks, new infrastructure to manage the explosion of data, and the creation of secure technology footprints for enterprises worldwide.”