Canaan Partners closes ninth fund on $600m

The veteran venture capital firm raised the fund with the backing of both new and former investors. Fund IX will focus on the technology and healthcare sectors.

Canaan Partners, a global venture capital firm, has closed its ninth fund on $600 million, the firm announced in a statement.

The firm has maintained the investment strategy of its prior funds, allocating two-thirds of the fund’s investment capital to technology start-ups in digital media, consumer internet, mobile and communications companies in the US, India and Israel. The remainder will be allocated to investments in the healthcare sector, with a focus on biopharmaceutical, medical device and healthcare infrastructure companies.

The firm's professionals on the ninth fund include Brent Ahrens, John Balen, Stephen Bloch, Wende Hutton, Maha Ibrahim, Deepak Kamra, Warren Lee, Guy Russo and Izhar Shay. Alok Mittal, managing director of Canaan India, is an advisor on the fund.

Canaan could not be reached for comment at press time.

The fund received “strong” support from its existing limited partners as well as new investors, according to the statement. Investors in the firm’s previous fund, which closed on $650 million in 2008, include Abbott Capital Management, the Alaska Permanent Fund, the Employees’ Retirement System of the State of Hawaii, Pantheon Ventures, Performance Equity Management, Skillman Foundation and the University of California Board of Regents, according to data provider Private Equity Connect.

Fund VIII was generating a 1.44x investment multiple as of 30 June, 2011, according to UC Board of Regents documents.

Canaan was founded in 1987 and has around $3.5 billion in assets under management.  The firm maintains offices in New York, Silicon Valley, New Delhi and Herzliya Pituach, Israel.