IVP Raises $1.4 Billion Venture Fund as Private Valuations Soar

Institutional Venture Partners said it raised a $1.4 billion fund, its largest ever, part of a boom that has seen investments in U.S. startups double in the past five years.

It’s the 15th fund for Menlo Park, California-based IVP, a 35-year later-stage venture capital and growth equity firm. IVP has backed companies including Netflix Inc. and Snapchat Inc.

“I think there’s a lot of promise out there and that’s why there has been such a demand and an influx of capital,” said Steve Harrick, a general partner.

Private valuations have jumped and venture firms are raising record funds. Earlier this month, New Enterprise Associates announced the largest venture fund ever at $2.8 billion. Investors put $48.3 billion into U.S. startups last year, more than double that invested five years earlier, according to the National Venture Capital Association.

Institutional Venture has a total of $5.4 billion of committed capital under management. It plans to use the new fund to invest $10 million to $100 million in 12 to 15 businesses each year.

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