Summary:
CRV raises $750 million for its twentieth fund, focusing on seed and Series A startups
Strategic downsizing after returning $275 million to investors from its late-stage fund
Fund secured in just four weeks, with demand for double the amount
Investments to focus on consumer and devtools companies, following successes like DoorDash and Vercel
Latest investments include AI-driven startups CodeRabbit and Outtake
CRV, a veteran in the venture capital space, has successfully raised $750 million for its twentieth flagship fund, marking a significant milestone for the 55-year-old firm. This new fund is notably smaller than its previous $1 billion early-stage fund raised in 2022, reflecting a strategic shift in focus.
A Strategic Pivot
The firm has decided against raising another late-stage fund, a move underscored by its recent return of $275 million to investors from its $500 million Select fund. CRV cited the overvaluation of mature startups as a key reason, aiming to preserve overall returns by concentrating on seed and Series A investments.
Rapid Fundraising Success
Despite the downsizing, CRV's limited partners showed unwavering support, enabling the firm to secure the entire $750 million in just four weeks. The demand reportedly exceeded the fund's size, highlighting the confidence in CRV's investment strategy.
Focus Areas
CRV plans to channel the new fund into consumer and devtools companies, continuing its legacy of backing successful startups like DoorDash, Mercury, and Vercel. With a portfolio that includes over 750 startups and 80 public companies, CRV's track record speaks volumes.
Recent Investments
The firm's latest bets include CodeRabbit, an AI-powered code review startup, and Outtake, which leverages AI for cybersecurity solutions, showcasing CRV's commitment to innovation and technology-driven ventures.
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