ATV revs up fund VIII

Clarification: ATV invested in AeroVironment as part of a $540,000 round in 1982. The firm no longer held a stake in the company at the time of its IPO.—Alex

Advanced Technology Ventures

has put fund-raising into full throttle for its eighth fund, raising $272 million in less than four months, according to a regulatory filing.

The firm expects to raise a smaller fund than its $720 million 2001 vintage fund, General Partner Steve Bayloff told PE Week in April. No target has been announced, but Advanced Technology Ventures VIII could close between $300 million and $360 million, Bayloff said.

The firm has already signed a $40 million commitment from the Delaware Public Employees’ Retirement System, according to a regulatory funding. It also attracted investment from Abu Dhabi-based Procific and Pantheon Ventures.

The decreased fund size is in line with industry trends, Bayloff said. The firm also wanted to have a shorter fund cycle to help ensure new partners could come on board or move up internally. “It’s tough to wait six to seven years to get into the carry,” Bayloff said. “It’s better for the LPs, but it’s great for the GPs.”

The firm’s recent exits include AeroVironment (Nasdaq: AVAV), which went public in a $114 million IPO in January, and Xtent (Nasdaq: XTNT), which launched a $75 million IPO in February.

ATV did not own enough shares to be listed as a principal shareholder in AeroVironment’s prospectus, but the firm holds 2.99 million shares, or 13.2%, of Xtent. Those shares were worth more than $30 million on July 26, based on a $10.03 price per share. In addition, ATV portfolio company Trans1 filed for an IPO last week. ATV owns 19.5% of the company, which makes a medical device to treat lower back pain.

The firm has sold one company from its portfolio so far this year. Central nervous system drug maker Hypnion, which had raised $88 million from ATV and other VCs, sold for $315 million in April.

Last year, ATV portfolio company Acme Packet (Nasdaq: APKT) launched a $110 million IPO and Omneon Video Networks went into registration for its public offering. The firm also sold MicroVention, e-Security and Applications Networks during 2006.

ATV made six investments during the second quarter. It backed medical device company NeuroVista in a $33.8 million Series B, healthcare service company Aperio in a $10.6 million Series C, stealth wireless company Nextivity in a $16 million Series A, telecommunications company Visage Mobile in a $10 million Series E, drug maker Portola Pharmaceuticals in a $70 million Series C and services company ChannelAdvisor in a $30 million Series C.