The fund is a bit larger than its $500 million predecessor, which was raised in 2007, but below the $750 million cap that Bain Capital Ventures had listed in a regulatory filing in February 2009.
It is unclear if the firm, which invests in early and late stage companies, aimed for $750 million and fell short, or if it lowered the fund target after considering current economic conditions.
“What we are seeing right now is that later stage, profitable growth companies are getting expensive very quickly, which means we’re probably looking at a higher mix of early stage companies,” says Managing Director Michael Krupka. “We’re also seeing that the public markets have opened up to some degree, and strategic buyers have become more acquisitive.”
Separately, the hire of Connolly is reflective of Bain Capital Ventures sharing a name, history and office space with private equity giant Bain Capital, which began hiring senior portfolio operating pros 15 years ago. The buyout firm now employs about 50 worldwide.
Bain Capital Ventures is just dipping its toe into that water, asking Connolly to work intensively with certain of its portfolio companies. The first is EDGAR Online, the publicly traded financial reporting company that recently sold $12 million worth of convertible stock to the firm.
Connolly has joined the board of EDGAR Online, and he is working on various issues with its CEO, according to the firm. He also is listed as a partner on the new fund.
Bain Capital Ventures’ past investments include Tengion Inc., a developer of artificial organs and tissue, and which is in registration for an IPO, and La La Media, an operator of an online music store acquired by Apple late last year for an undisclosed amount. —Dan Primack