TCV Wraps Vehicle, Plans to Boost Staff –

PALO ALTO, Calif. – Technology Crossover Ventures (TCV) in January notched a $400 million second and final close on Technology Crossover Ventures III (TCV III).

The fund, which was oversubscribed, held a first close in November on about $270 million (VCJ, December 1998, page 20).

Like its predecessor funds, TCV III will back a broad range of information-technology companies, said General Partner Jay Hoag.

With its latest fund more than twice the size of 1996’s $195 million TCV II, the venture firm will hike its individual deal size to between $8 million and $10 million from about $5 million and $7 million, Mr. Hoag said. TCV also is planning to add two to four investment professionals, ranging from the analyst to partner level.

The firm invests in the United States and Canada, with half of TCV II’s deals based “in our backyard,” Mr. Hoag said, referring to the Bay Area.

New limited partners include Nationwide Insurance Group, BancBoston Capital, New Mexico State Investment Council, the LGT Global Trust and funds-of-funds managed by Chase Private Equity Partners Select, Ltd. and Donaldson, Lufkin & Jenrette Inc. TCV also added more than three dozen technology executives to its investor list.

TCV was preparing to make its final two new investments from TCV II at press time.