Massachusetts-based venture capital firm Fairhaven Capital has closed its latest fund on $250 million, surpassing the firm’s original target of $200 million.
The vehicle marks the firm’s first successful, independent fundraise since it spun out of TD Bank last year. The firm was known as TD Capital Ventures while it operated as the captive venture arm of the Toronto-based bank for roughly six years.
TD Bank, TD Capital Ventures' sole investor for its first fund, has invested in the spin-out's vehicle. Limited partners in the $250 million fund include family offices, public pensions and fund of funds from North America, Europe and Asia.
In addition to its traditional focus on enterprise, consumer technology, and security companies, Fairhaven will invest the new fund in early stage companies in the high performance materials and digital media sectors. The Cambridge-based firm utilises an investment approach that stresses the importance of investing in markets with rapid growth characteristics.
“Investment strategy is the same as it has been since we started investing in 2001,” Fairhaven co-founder Paul Ciriello told PEO. “Like all of our investments, the investments in digital media and high performance materials start-ups are driven by our market approach to VC.”
Fairhaven has already invested a portion of the fund in five portfolio companies, which include Cocona, a developer of eco-friendly performance fabrics; Dataupia, a manufacturer of a data warehouse appliance; EveryZing, a search engine developer; and Xtranormal, a company that has developed a process for creating full motion animation from text.
Ciriello said he expects the fund to ultimately possess 20 to 25 companies in its portfolio.
Fairhaven is led by managing directors Ciriello and Jim Goldinger, who co-founded TD Capital Ventures in 2001.
One of the firm’s most successful investments to date has been EqualLogic, a storage network provider which Dell Computers purchased in 2007 for $1.4 billion.