Enterprise agency CRV raises $750M, downsizing after returning capital to traders

CRV has secured $750 million towards the 55-year-old enterprise agency’s twentieth flagship fund, it introduced on Friday.

The brand new fund is smaller than the $1 billion early-stage fund CRV closed within the fall of 2022. At the moment, the agency additionally introduced a $500 million second Choose fund, a capital pool for backing late-stage rounds of current portfolio firms.

It’s no shock that CRV will not be elevating a late-stage fund as a part of its new fundraise. Final 12 months, the agency informed The New York Instances it was returning $275 million from its $500 million Choose fund to traders. The agency defined that it will not be elevating one other late-stage car as a result of follow-on rounds for a lot of of its firms would decrease its total returns.

CRV’s restricted companions have been desirous to again the agency’s smaller fund, the agency stated. It raised its complete $750 million fund in simply 4 weeks, with demand for double that quantity, CRV wrote.

The newest fund will likely be used to put money into seed and Sequence A startups and it’ll concentrate on backing shopper and devtools firms.

CRV is thought for main DoorDash’s seed financing and the Sequence A rounds for each Mercury and Vercel, a cloud platform for internet builders, which was final valued at $3.25 billion.

Since its founding in 1970, CRV has backed over 750 startups, with 80 of them finally going public.

The agency’s newest investments embody CodeRabbit, a startup for AI code overview, and Outtake, an organization that makes use of AI for cybersecurity.