Battery Ventures raises seventh fund

The Wellesley, Massachusetts-based venture capital firm’s new $450m vehicle will look to continue IT investments and expand into China and India.

Wellesley, Massachusetts-based venture capital firm Battery Ventures closed its seventh fund last week on $450 million (€366 million).

Like its predecessor, Fund VII will invest in IT companies across all stages of growth, from seed through later-stage and buyouts. Battery is currently wrapping up investments with its $850 million Fund VI, raised back in 2000, and expects to begin investing from the new fund in early 2005.

According to a firm spokesperson, fundraising for the new vehicle began in June. All investors save one have invested with Battery previously, and approximately 90 percent of LPs are US-based. New investor GIC Special Investments, the private equity unit of the Government of Singapore Investment Corp., was brought aboard in order to give Battery presence in Asia as its looks to expand investments in both China and India, the spokesperson said.

Fund VII will be invested over a period of approximately three years and is expected to have between 35 and 40 companies in its portfolio. Battery plans to make investments ranging in size from $5 million too $25 million.

The fund will be managed by a team of nine general partners and will be administered through Battery’s offices in both Wellesley and San Mateo, California.

Founded in 1983, Battery currently manages more than $2 billion in assets, including the latest fund.

A number of venture capital firms have announced new fund closing just last month. San Francisco-based CMEA Ventures closed its sixth venture fund – which will invest in both life sciences and high technology – on $300 million (€245 million). Toronto-based venture capital firm Ventures West Management announced the close of its eighth diversified fund on C$250 million ($192 million; €150 million). According to a press statement, the new entity is the largest private venture capital fund ever raised in Canada. Menlo Park, California-based venture capital firm InterWest Partners announced the close of its ninth fund on $600 million (€489 million). InterWest, which also has an office in Dallas, invests in early-stage companies in both the life sciences and information technology sectors.