Index Ventures closes $550m VC fund

The firm closed its Index Ventures VIII on $550m for seed and venture capital investments, following a $700m growth fund raised last year.

Index Ventures has closed Index Ventures VIII, its eighth venture capital fund focusing on seed investments, on $550 million, the firm said.

Index Ventures VIII’s final closing follows the closing of Index Ventures Growth III on $700 million in the spring, according to PEI’s Research & Analytics division. The third growth fund’s investor base includes Danish fund of funds ATP, according to PEI Research.

A source close to the matter told Private Equity International that the fund was oversubscribed, and that both Index Ventures VIII and Index Ventures Growth III closed within a couple months of fundraising, with commitments from existing limited partners.

The firm also promoted Shardul Shah to partner. He was previously a principal at Index, which he joined in 2008 as an associate.

He joins Dick Costolo, Danny Rimer, Mike Volpi and Ilya Fushman as the firm’s US-based partners. Costolo, former Twitter chief executive between 2010 and 2015, was recently named venture partner at the firm.

Shah is the only member of Index who has worked at the firm’s offices in Geneva, London and San Francisco, according to the firm. He focuses on infrastructure, security and software companies and is currently involved in Datadog, Nginx, Minio, DoubleDutch, Outbrain and two security companies, the firm said.

He began his career at Summit Partners, where he was associate for three years before joining Index, according to his LinkedIn profile.

The firm manages about €2.7 billion ($3.02 billion) in assets, according to PEI Research.