Redpoint raises fund III, first two still in the red

Redpoint Ventures closed its third fund with $400 million in limited partner commitments. Redpoint confirmed the fund close through a spokeswoman, but would not comment further on matters involving its limited partner relationships. The fund reportedly has a 30% carry.

Its previous fund closed with $1.25 billion in 2000, but was later downsized to $750 million.

Redpoint’s most recent exit was earlier this month when Hewlett-Packard Co. (NYSE: HPQ) agreed to acquire OuterBay Technologies, a Cupertino, Calif.-based provider of archiving software for enterprise applications and databases. No financial terms were disclosed on the acquisition.

But OuterBay has raised about $44 million in VC funding since its 1997 inception from Redpoint and BA Venture Partners, Leapfrog Ventures, Mayfield Fund and Focus Ventures.

In August, Redpoint was one of the backers that took part in the $67 million Series A round of Amp’d Mobile Inc., which has raised about $117 million to date and was expected to secure another $100 million this year.

Redpoint was founded in 1999 with much fanfare by former partners of Brentwood Venture Capital and Institutional Venture Partners. Redpoint partners are Allen Beasley, Jeff Brody, Tom Dyal, Tim Haley, Brad Jones, Greg Martin, Chris Moore, Scott Raney, John Walecka and Geoff Yang.

Redpoint has yet to live up to its hype. Its first fund had a negative IRR of 18.5% as of September 2005, according to a performance report produced by the University of California, a limited partner in the fund.

Likewise, Redpoint’s second fund had a net IRR of negative 13.9%, as of June 2005, according to CalPERS, an LP in the fund.