The boom times aren't over for everyone, despite the fact that startup founders and laid-off tech workers know all too well. In the U.S., venture firms are amassing more cash than ever, and that's a good thing.
The Bay Area firm told regulators this week that it has secured over $700 million for its third fund. It is believed to be the largest such fund in the area.
An earlier statement offered a hint as to how the money would be spent. The firm said it would use the money to back the most promising entrepreneurs at the Series B and C stages.
It's difficult to know what Menlo plans to do with opportunity funds and similar vehicles. SoftBank launched a $100 million opportunity growth fund in 2020 to exclusively invest in companies led by founders and entrepreneurs of color, but that doesn't seem to be what they're doing The firm can respond to my emails, but never mind that.
According to the firm's latest filing, Menlo once sought to raise $750 million for its third special opportunities fund, but ended up raising about $11 million more from 29 undisclosed investors. The previous special opportunities vehicle closed at half a billion dollars and was over subscribed. According to data from PitchBook and the Securities and Exchange Commission, Menlo's funds tap out at a rate of $500 million per year. The fifteenth early-stage fund closed with $500 million in capital commitments.
Hundreds of companies have been supported by the venture firm. A $37 million round for Polly, a software-as-a-service startup focused on the mortgage industry, is one of the recent deals led by Menlo. More than 75 public companies have been backed by the company and it has a portfolio of over 160 M&A deals.
So. Many. New. Venture. Funds.
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