Grotech Venture has closed its eighth fund, Grotech Ventures II (GV II), with USD225m in committed capital.
The fund was oversubscribed by more than 10 per cent, and was raised from both existing and new investors. GV II brings Grotech’s total capital under management to USD1.3bn across all funds.
The approach for GV II will be consistent with Grotech’s core strategy. The firm typically represents the first institutional money raised and, initially, invests smaller amounts of capital. Grotech continues to invest as the company grows. As part of its strategy, Grotech forms top-tier industry syndicates with other investors and has demonstrated its ability to exit strategically to maximise success for Grotech’s LPs and portfolio companies alike.
The focus for GV II will continue to be in areas where the firm has deep domain expertise and in geographic areas that tend to be underserved by early-stage capital. Grotech seeks the most innovative early stage IT companies in high growth markets including: digital media; social, mobile and cloud computing; enterprise and infrastructure software; security technologies; consumer internet and ecommerce; as well as energy and healthcare IT.
With offices in Northern Virginia, Maryland and Colorado, the firm has already made 12 investments from the new fund and continues to invest its current fund, Grotech Ventures, which has been a top performer.
"We’re extremely pleased to have raised GV II, which speaks to the success of our investment approach, our ability to execute investing fundamentals, and the solid performance of our most recent fund," says Frank Adams, managing general partner and founder of Grotech Ventures. "These attributes were directly related to our ability to raise this fund in an environment that continues to be very challenging and competitive.”
Some of the firm’s portfolio companies include HelloWallet, Invincea, LivingSocial, Logi Analytics, LogRythym, OpenQ, Optoro and Zenoss.
The firm secured a major exit recently with NexGen Storage, which was acquired in April by Fusion-io for approximately USD119m in cash and stock.
