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Lightspeed Said to Be Raising $875 Million for U.S., China Funds

Lightspeed Venture Partners, an investor in LivingSocial.com, has almost completed raising two funds, one in the U.S. and one in China, totaling about $875 million, according to two people with knowledge of the matter.

The Menlo Park, California-based firm’s U.S. fund is gathering about $675 million, with the remaining $200 million going to the China fund, said the people, who asked not to be identified because the information isn’t public.

Venture capital firms are luring investors after the biggest year for U.S. Internet initial public offerings in more than a decade. In the past two months, Peter Thiel’s Founders Fund, Andreessen Horowitz and Canaan Partners have raised funds ranging from $600 million to $1.5 billion. Lightspeed, which has offices in the U.S., China, India and Israel, raised its last fund in 2008, when it pulled in $800 million.

A call for comment placed to Lightspeed wasn’t returned.

The firm disclosed in separate regulatory filings in December and January that it was seeking commitments of $675 million for Lightspeed Venture Partners IX, and that it had already amassed $84.4 million for Lightspeed China Partners I.

Lightspeed was an early investor in Fusion-io Inc. (FIO), a maker of flash-memory technology that held its IPO in June. Lightspeed owns a 9.2 percent stake, valued at $184.7 million, in the Salt Lake City-based company, according to data compiled by Bloomberg. Lightspeed is also an investor in daily-deal site LivingSocial.com and owned a stake in Playdom Inc., the social-game company purchased in 2010 by Walt Disney Co. (DIS)

In China, the firm invested in 99Bill, an online-payment company.

Bloomberg LP, parent of Bloomberg News, is an investor in Andreessen Horowitz.

To contact the reporters on this story: Ari Levy in San Francisco at alevy5@bloomberg.net; Sabrina Willmer in New York at swillmer2@bloomberg.net

To contact the editors responsible for this story: Tom Giles at tgiles5@bloomberg.net; Christian Baumgaertel at cbaumgaertel@bloomberg.net

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