SAN MATEO — Sierra Ventures, an early-stage technology focused venture capital firm, announced the closing of its 12th investment fund, raising $215 million. This fund was oversubscribed according to Sierra and the prior fund’s institutional investors increased their commitment to the new fund.
Founded in 1982, Sierra Ventures focuses on Seed, Series A, and Series B investments. The firm said it looks for the following in potential investments, building on each previous stage:
- Seed – big ideas and strong entrepreneurs. Typical check size of $500K – $2.5M.
- Series A – early proof points of product market fit and initial customer traction. Typical check size of $2.5M – $7M.
- Series B – validation of revenue model and ability to scale rapidly. Typical check size of $6M+.
“We are very appreciative of the continued support we have received in Sierra XII from our existing investors, as well as excited to add some leading Limited Partners in this fund. We are proud to have some of the best endowments, pension funds and corporations from across the world on our roster,” said Sierra Ventures Managing Director Mark Fernandes.
Similar to Funds X and XI, Sierra Ventures Fund XII will be managed by Mark Fernandes, Tim Guleri, and Ben Yu, who have worked together for 17 years, and will have a focus on investing in early-stage Next Generation Enterprise and Emerging Technology companies that are transforming and disrupting industries. The fund will continue its investment focus on Seed and Series A stage investments, as well as a few Series B investments in companies that show high potential revenue growth. The team embraces a “patient capital” approach, understanding that it takes time to build and grow truly disruptive, lasting companies.
Interest in Fund XII was driven by the continued success of Fund X (2012) portfolio companies, with nine notable exits to date including Treasure Data (ARM) and RedLock (Palo Alto Network), both acquired in late 2018 for a cumulative purchase price of almost $800 million.
“Since 2012, Funds X and XI have invested in over 50 companies that rode the wave of consumerization of IT, the emergence of B2B marketplaces, and AI/ML for vertical applications, as well as new emerging areas including 5G wireless, crypto/blockchain, AR/VR, and robotics. In Fund XII, we will continue to seek innovations in these areas. In particular, we believe AI and blockchain will become the horizontal platform technologies that cover both enterprise and consumer needs, touching almost everything we do,” said Sierra Ventures Managing Director Ben Yu.
Sierra has over $2 billion in assets under management.