Industry Ventures Closes $400 Million Secondary Fund, Exceeds $1B Of Capital

VC firm Industry Ventures has closed its Fund VI, a $400 million secondary fund focused on providing liquidity alternatives for venture capital and growth equity investments.

Additionally, the firm recently closed a $155 million ‘Special Opportunities Fund’, bringing total capital under management to more than $1 billion.

The new fund, which Industry Ventures says was oversubscribed, will serve to address liquidity needs for employees, investors and founders across the lifecycle of a venture capital investment. Yes, that means helping them cash out prior to an exit event.

Says Hans Swildens, managing director and founder of Industry Ventures:

“The broader VC ecosystem has undergone a significant shift as structural changes impacted the ability for sub-$100 million revenue VC-backed companies to access the public markets, while simultaneously there are hundreds of VC funds that are at the end of their 10-year term or extension period.

These dynamics result in a need for growth companies and their investors to find capital and liquidity under new structures and is precisely the need our fund is fulfilling.”

Recent Industry Ventures exits include Ancestry.com, Broadsoft, JaJah (acquired by Telefonica), Pure Digital (acquired by Cisco), and Sourcefire.

Other noteworthy ‘portfolio’ companies include Facebook, Twitter, Pandora, Chegg, Alibaba, BillMeLater, Zend, LoveFilm.com, MindJet, WhitePages.com, Shop.com and Drugstore.com.