IVP Raises $300M for Fund XI

VC pioneer Reid Dennis has likely raised his last fund. His firm, Institutional Venture Partners (IVP), announced last week it closed its eleventh fund, Institutional Venture Partners XI with $300 million in commitments, $50 million more than its initial goal and $75 million more than its previous fund.

Dennis, a part-time managing director and general partner of the firm, told Venture Capital Journal (a sister publication of PE Week) earlier this year that he does not expect to be a partner in fund XII.

The Menlo Park, Calif.-based firm says its limited partners in fund XI include university endowments, public pension funds, funds-of-funds and individuals. LPs in previous funds include Mercantile Investment Trust, National Life and Accident Insurance Co., United British Securities Trust and the University of California.

In addition to Dennis, managing directors in the fund are Todd Chaffee, Norm Fogelsong, Steve Harrick and Dennis Phelps.

IVP invests in expansion-stage IT companies. Its portfolio includes Cupertino, Calif.-based ArcSight, which provides enterprise security management services; IDUN Pharmaceuticals, a San Diego-based drug provider that focuses on neurological disorders; and Vonage, an Edison, N.J.-based VoIP provider.

Dennis founded IVP in 1980 and the firm now has more than $1.6 billion in capital under management. And among the investments in that first IVP fund were such companies as Seagate, Collagen, LSI Logic and Stratus Computer. Five years ago, the firm split in three, with partners forming Redpoint Ventures and Versant Ventures

In 1952, long before Sand Hill Road in Menlo Park was synonymous with venture capital, Dennis invested all the money to his name, $20,000, in a startup called Ampex Corp. After the company went public, Dennis saw his initial stake grow to more than $1 million in market value.

In 1974, backed by a $5 million commitment from American Express, Dennis formed Institutional Venture Associates – an IVP predecessor – and raised $19 million from six institutions. That was roughly half of all the capital VC firms raised in the United States that year.

Email Matthew.Sheahan@thomson.com