Wednesday 6th Jan 2010
Market News
New Enterprise Associates closes biggest VC fund since 2007 with $2.5bn
New Enterprise Associates Inc, a leading global venture capital firm, today announced the official close of its thirteenth fund, which it began investing last May. At nearly $2.5 billion, it is comparable in size to NEA’s prior fund. This new fund represents an estimated 17 percent of all U.S. venture capital funds raised in 2009 and is the largest single fund raised since 2007. This fund brings NEA’s total committed capital to more than $11 billion across all of its funds.
“NEA is thrilled with the tremendous support shown by our limited partners during an incredibly challenging time for the venture capital industry,” said Peter J. Barris, Managing General Partner of NEA. “This is a resounding vote of confidence for NEA as we continue to execute on our global investing strategy, as well as a strong signal of the continued vitality of the venture industry.”
Consistent with the strategy employed for the firm’s fund raised in 2006, core investment areas for the new fund will be information technology, energy technology and healthcare. The fund will leverage the firm’s one-fund approach to venture capital and venture growth equity investing across the globe, with offices on both U.S. coasts and in China and India.
“Drawing on its deep domain expertise and extensive global network, NEA’s strategy focuses on finding the best opportunities to invest in transformational businesses,” said Mr. Barris. “Whether seed-stage or late-stage, domestic or global, we invest in companies where there is a tremendous growth opportunity for truly innovative businesses to establish industry leadership.”
In recent funds, NEA’s information technology and healthcare focus has expanded to include energy technology and the firm is among the most active investors in the sector. NEA has also expanded its global operations with affiliate offices in Beijing and Shanghai, China and Mumbai and Bangalore, India.
“NEA’s fundraising success demonstrates an ongoing recognition by the investment community of the direct role venture capital plays in fostering innovation, bringing new technologies to market and keeping the U.S. on the cutting edge of technology,” said Mark Heesen, President, National Venture Capital Association (NVCA). “Venture capital drives growth that can fuel the development of entire new industries, stimulate the economy and improve the quality of life here in the U.S. and around the world. NEA has been a leader in identifying breakthrough businesses and nurturing innovative companies. This most recent close further demonstrates the firm’s commitment to the American entrepreneurial engine.”
