Updata Partners has closed its new growth equity investment fund, Updata Partners V, with commitments of USD280 million – over its original target of USD225 million.
The fund will invest in software and software-driven companies that have achieved initial operating scale and are at an inflection point in their growth.
The fundraising is Updata’s largest to date, bringing the firm’s cumulative committed capital since inception to more than USD750 million.
“This new fund is a milestone in our history and a positive endorsement of our growth equity strategy and results,” says Carter Griffin, general partner. “We are grateful to our institutional investors for their confidence in us.”
Updata believes the transformational role of technology, and specifically software, is still in its early stages, and the opportunity created by software-driven businesses will continue to spread to new industries, markets and products. This transformation, coupled with the proliferation of entrepreneurship into all corners of the economy, has created an enormous opportunity for growth equity. Updata typically backs high-growth, founder-led companies looking for a partner to help them reach the next stage of development.
“There are two kinds of capital we provide – financial capital, which is funding, and experience capital, which is the insight and acumen learned over years in our industry and markets,” says James Socas, general partner. “Our growth equity focus and operating experience give us an edge in helping our portfolio companies avoid the many pitfalls on the path to success.”
Updata Partners V will make a few select investments each year, typically investing USD10-20 million of equity in each opportunity.
Updata prefers to be the first institutional capital into a business and targets investments outside of Silicon Valley.
