Institutional Venture Partners, an investor in Web companies including Zynga Inc., Twitter Inc. and LivingSocial, is planning to raise $750 million to $1 billion for its next fund, said two people familiar with the matter.
The firm is expected to finish capital raising by June, said the people, who asked not to be identified because the information is private. IVP last raised a fund in August 2010, when it brought in $750 million, the largest in its history.
IVP, based in Menlo Park, California, is following other venture capital firms that are raising new funds after the biggest year for U.S. Internet initial public offerings in more than a decade. Since late last year, Andreessen Horowitz, Peter Thiel’s Founders Fund and Steve Case’s Revolution LLC have reeled in money, and Lightspeed Venture Partners is close to raising $875 million for two funds, people with knowledge of the matter said last month. Revolution and Lightspeed are also investors in daily-deal site LivingSocial.
Gina Bauman, a spokeswoman for IVP, said the firm doesn’t comment on fundraising.
IVP, which focuses on more mature startups than other venture firms, turned an investment of about $13 million in social-game developer Zynga into a $475 million stake after the company sold shares to the public in December. The firm owns a $170 million stake in HomeAway Inc., the vacation-rental site that went public in June.
In 2009, IVP invested in micro-blogging service Twitter, and last year it led or participated in three of the biggest U.S. venture capital deals. LivingSocial raised $400 million, cloud storage provider Dropbox Inc. raised $250 million and online discounter WhaleShark Media Inc. brought in $150 million.
IVP was founded by Reid Dennis in 1980 and has six general partners. Past investments include Juniper Networks Inc., TiVo Inc., Netflix Inc. and Seagate Technology Plc. The first investment from its 2010 fund was in Buddy Media Inc., a developer of social-media advertising software. The New York- based company now works with eight of the world’s 10 biggest advertisers.
Bloomberg LP, parent of Bloomberg News, is an investor in Andreessen Horowitz.