Silicon Valley stalwart IVP raises $600M

Institutional Venture Partners announced in May the close of IVP XII, a $600 million late stage venture fund that will target U.S. technology companies. The fund will focus on communications and wireless companies, Internet and digital media, and enterprise information technology.

Fund 12 is the largest fund in the firm’s 26-year history. Its prior fund raised $300 million in 2004. General Partner Norm Fogelsong says the larger fund was driven in part by its inclusion last year in two large private equity deals. IVP was an investor in the $132 million funding of Cortina Systems Inc., a maker of communications chips, and the $75 million late stage funding of HomeAway Inc., a provider of online classified ads for the travel market.

Late stage deal flow is strong, and the firm plans to continue to invest in large private venture rounds with the new fund, Fogelsong says. A typical investment for IVP is from $10 million to $30 million, and the firm prefers to serve as lead investor in venture financings above $100 million.

As large as it is, fund 12 could have been even bigger. Fogelsong says it was oversubscribed, with existing limited partners making the bulk of investments. The firm did not disclose the names of LPs.

IVP currently has six general partners in addition to Fogelsong: Todd Chaffee, Reid Dennis, Steve Harrick, Sandy Miller and Dennis Phelps. Dennis, 81, has said that he will not actively invest in fund 12. —Joanna Glasner