(Bloomberg) Battery Ventures raised two new funds totaling $2 billion, virtually double its final complete and highlighting buyers’ rising curiosity in firms that cater to different companies, slightly than shoppers.
Now we have at all times considered B2B because the attractive market.
Michael Brown, normal accomplice
Battery Ventures
The brand new funds, a $1.2 billion Battery Ventures XIII, together with an $800 million aspect fund to assist again extra-large bets, will preserve investing in sectors like business-to-business software program, info infrastructure and cybersecurity.
Michael Brown, normal accomplice, Battery Ventures
“Now we have at all times considered B2B because the attractive market,” stated normal accomplice Michael Brown, in a mild dig at the enterprise corporations higher identified for shopper investments that at the moment are beefing up their enterprise portfolio. “For us, it’s extra of the identical.”
Battery’s successes embody tax-compliance software program maker Avalara Inc., which first acquired an funding in 2012. Its shares at the moment are buying and selling at round $90, virtually 4 instances the extent of its June 2018 preliminary public providing. Different B2B firms Battery has invested in embody Coupa Software program, a supplier of procurement and spend administration know-how; Callidus Software program, a supplier of configure-price-quote software program acquired by SAP SE; and 6sense, a supplier of account-based advertising know-how.
A number of of Battery’s portfolio firms had been additionally acquired by greater firms or personal fairness corporations, together with WebPT, a supplier of web-based medical information techniques; ClearCare, a supplier of software program for dwelling healthcare companies; and Glassdoor, a web based job-search and employment info service.
The transactions helped raise curiosity in enterprise general, together with the efficiency of Battery’s funds. Fund IX, which dates from 2010 and held investments in a number of the just lately exited portfolio firms, has an annual inside fee of return of 26%, in keeping with Bloomberg information.
Battery hasn’t solely escaped the malaise hanging over some shopper firms. It’s an investor in Wag Labs Inc., a troubled dog-walking firm. A few of its different retail companies seem to have extra momentum, comparable to StockX, a sneaker-trading market.
The agency final raised two funds totaling $1.25 billion in February 2018.
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