New Enterprise Associates, the biggest venture capital investor in Groupon Inc., 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. 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.