Industry Ventures raises over $1.7B in two new separate funds
Leading investment firm Industry Ventures has raised over $1.7 billion in two new separate funds. The firm announced the final closing of Secondary X, securing more than $1.45 billion in new investments. The firm also saw the addition of over $260 million in fresh capital across the fund and affiliated entities through the closing of Tech Buyout II.
Secondary X, Industry Ventures’ largest fund raised to date, will empower the company to maintain its capacity to offer liquidity solutions to venture capital investors. Following the approach of previous funds, Secondary X aims to make minority investments in well-established, later-stage venture-backed companies. It will accomplish this by
- Utilizing flexible investment methods
- Including direct secondaries
- Secondary LP investments
- Continuation funds
- Other unique opportunities.
In its 20-year history, Industry Ventures has executed over 600 secondary investments, including over 400 secondary venture capital fund limited partnership interests and 170 direct secondary company share purchases. This allowed exposure to over 5,500 venture capital-funded companies. Notable exits from this strategy include investments in Uber, Alibaba, ZipRecruiter, Nubank, and others.
“The closing of our tenth secondary fund is a tremendous achievement and milestone for Industry Ventures,” said Justin Burden, head of the Secondary team. “Over our 20-year history we have invested across multiple market cycles, and this new fund enables our team to continue to identify and gain exposure to attractive secondary opportunities for our investors.”
Tech Buyout II marks Industry Ventures’ second buyout vintage and signifies a doubling of commitments compared to the previous fund. The hybrid fund focuses on small software company buyouts and emerging software buyout funds through both primary and secondary LP commitments.
Over the last five years, Industry Ventures has invested in 14 direct software buyouts and over 14 emerging buyout funds. These investments have provided exposure to almost 75 active software companies predominantly owned by their investors. Tech Buyout Fund I has had four portfolio exits, including LINQ, AutoQuotes, Liquid Frameworks, and Cloud 9 Software2. These exits involved sponsor-to-sponsor transactions or were acquired by strategic backed by sponsors.
“We’re especially grateful for the strong support both Funds received from existing and new limited partners alike given the difficult fund-raising environment that we are in,” said Hans Swildens, CEO and Founder of Industry Ventures. “Overall, the venture market needs more liquidity, and our investment team is hard at work helping shareholders and limited partners generate cash from their investments.”
