Bain Capital Ventures (BCV) set a new record for the firm after raising $1.9 billion for two new venture funds to invest in a handful of tech startups.
- The funds targeted startups of varying sizes, ranging from fintech to infrastructure to apps and commerce technology.
- In May 2021, BCV announced $1.3 billion raised for investments in earlier-stage companies.
- Last year, BCV began a $560 million investment fund solely dedicated to crypto-related businesses.
- “Entrepreneurs want to build alongside investors who’ve done so successfully, and our team of operators, builders, and experienced investors delivers on that promise,” BCV Partner Enrique Salem says.
Why it’s news
BCV’s impressive funding size stands out at a time when venture capital investing has recently pulled back. Last year, venture-capital investments dropped worldwide, and investors approached funding more cautiously.
The new funding will go to companies in varying industries at different levels of growth. In addition to growing the firm’s funding, BCV has been expanding its existing investment teams, Bloomberg reports.
BCV partner Matt Harris shared that the firm will focus primarily on startups that work alongside businesses rather than investing in consumer-facing companies. Though the tech industry has been struggling, Harris told Bloomberg that momentum is beginning to build again.
“I think technology is moving very quickly,” Harris says. “What we found is that investors are still very interested, and this may be, in fact, a buying opportunity.”
Backing up a bit
Venture capital fundraising reached a nine-year low as economic pressures start to dissuade investors. In the fourth quarter of 2022, venture firms raised nearly $20.6 billion in funds—a 65% drop from the year before and the lowest fourth-quarter results since 2013, The Wall Street Journal reports.
The fourth-quarter results also saw significantly less funding raised than in the previous three months. Limited partners—those who back the funds—invested in 226 venture-capital funds during the fourth quarter. In 2021, limited partners invested in 620 funds during the fourth quarter.