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Groupon Investor Plans to Raise 2.6 Billion for Fund

New Enterprise Associates, the biggest venture capital investor in Groupon Inc. (GRPN), plans to raise $2.6 billion for its new fund, the largest raising of its kind in more than 10 years.

New Enterprise Associates 14 LP already has raised $2.1 billion, the investor said in a filing today with the U.S. Securities and Exchange Commission. NEA, which has offices in Menlo Park, California, and Chevy Chase, Maryland, increased the new fund’s target size from $2.3 billion in March.

NEA was a winner among U.S. venture firms in last year’s market for initial public offerings, thanks to a 14 percent stake in Groupon, the daily-deal site, and a 15 percent holding in flash-memory technology provider Fusion-io Inc. (FIO) The company’s total ownership in those companies is worth about $1.2 billion.

Raising $2.6 billion would give NEA the largest venture fund since at least 2001, said John Taylor, a researcher at the National Venture Capital Association. NEA raising a large fund signals they have satisfied investors in the past, he said.

“While the industry is said to be contracting, it really is becoming a concentration at this point with large, successful firms becoming larger,” Taylor said in an e-mail.

To contact the reporters on this story: Sarah Frier in New York at sfrier1@bloomberg.net; Ari Levy in San Francisco at alevy5@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net

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