Venture capital firm BlueRun Ventures has closed its fourth fund, BRV IV, on just under $250 million, shy of its original target of $300 million.
The firm decided to stop fund raising because of adverse market conditions, although it could potentially raise more capital for the fund in the future.
“With our strategy as really early stage investors – and this is what I’ve told our LPs – is that smaller amounts of money are actually better. It doesn’t make sense to raise more capital in this environment,” according to John Malloy, founder and partner at BlueRun.
Smaller funds are “the way to go” as they provide more specialisation and focus in investing in different areas and strategies, said Malloy.
BlueRun: Nokia spin-out
The majority of BRV IV’s investments will be in China and the US. The fund will continue to focus on early stage deals in technology sectors such as the internet, media and semiconductors, Jui Tan, a partner at BlueRun China, the firm’s Chinese operations, said in an interview.
The firm currently has four investment professionals in China and “expects to expand further”, Tan added.
BlueRun’s previous investments in China include Innofidei, an integrated circuits and system solutions provider; PPLive, a peer to peer streaming technologies provider; and Pica, a mobile multimedia instant messaging and information service provider.
It doesn't make sense to raise more capital in this environment.
In 2008, BlueRun stopped investing in Israel. Yossi Hasson, a partner in the firm’s Israeli office, has left. Sujit Banerjee, a partner and founder of the firm’s India office, will split his time between BlueRun and Element Partners, a cleantech venture firm based in the US. Banerjee will source cleantech investments for Element and other technology deals for BlueRun.
Headquartered in Menlo Park, BlueRun has offices in Beijing, Shanghai, Seoul, Mumbai and Helsinki. The firm was formerly the venture unit of telecommunication giant Nokia but spun out in 2005. It currently has more than $1 billion in capital under management.