Battery Ventures Is Raising as Much as $950 Million for Two Funds

The firm’s prior investments include HotelTonight and food delivery startup Sprig.

Battery Ventures is trying to raise a combined $950 million for two companion venture capital funds, said a person familiar with the fundraising. The firm has set a $650 million target for Battery Ventures XI LP and a $300 million goal for the related vehicle, Battery Ventures XI Side Fund LP, said the person, who asked not to be named because the plans are private.

Battery used a similar format for its prior fundraising, in which it secured $650 million for Battery Ventures X LP and $250 million for Battery Ventures X Side Fund LP, according to Feb. 21, 2013 regulatory filings. The so-called sidecar fund will be used to invest in bigger deals and will not have concentration restrictions like the main fund, the person said. Rebecca Buckman, a spokeswoman for Battery, declined to comment on the fundraising.

Investors in both of those funds include Employees’ Retirement System of the State of Hawaii, San Francisco Employees’ Retirement System, Massachusetts Pension Reserves Investment Management Board, Alaska Retirement Management Board, and Alaska Permanent Fund, according to data compiled by Bloomberg.

Battery invests in technology companies specializing in software and services, Web infrastructure, e-commerce, digital media, and industrial technologies. The Boston firm’s prior investments include video-conferencing provider Blue Jeans Network, room-booking site HotelTonight, and food delivery startup Sprig.

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