NEA closes $2.6bn venture fund

The firm's 14th fund is its third fund to close on or above $2.5bn and will continue NEA’s strategy of investing globally in IT, healthcare and energy technology, says NEA's Peter Barris.

Venture capital firm New Enterprise Associates has held a final close for its 14th fund on $2.6 billion, making it one of the largest venture funds ever raised.

NEA had previously targeted $2.3 billion for the fund, according to documents filed with the US Securities and Exchange Commission in March, but listed a revised target of $2.6 billion in a SEC filing in May. At the time, 146 investors had committed $2.1 billion to the fund, the firm’s third consecutive vehicle to close on or above $2.5 billion. NEA’s previous fund collected $2.5 billion in 2010.

Fund XIV will continue the firm’s strategy of investing in information technology, healthcare and energy technology. Specific segments of interest within IT include enterprise software and systems, education, consumer technology and digital media, according to the firm. NEA’s healthcare investing strategy continues to target opportunities in the biopharma, healthcare services and medical device sectors.

NEA managing general partner Peter Barris said in a statement the fund received commitments from “many longtime limited partners, as well as some new ones, who believe that a diversified, global strategy is the path forward for venture capital”. Barris added that the venture industry has in recent years “transformed” to include larger funds that invest globally in a diverse group of sectors.

NEA was unavailable for comment at press time.

Limited partners in Fund XIV include the Teachers’ Retirement System of Louisiana and the Houston Municipal Employees’ Pension System.

In April, NEA invested alongside Google Ventures in AVOS Systems, an Internet company led by YouTube co-founders Chad Hurley and Steve Chen. The same month, NEA and Kleiner Perkins Caufield & Byers invested $16 million in web-based education platform Coursera.

NEA has offices in the US, China and India. In China, NEA primarily makes early and late stage investments in companies in the technology, healthcare and consumer products and services sectors. It also invests indirectly in the country through two affiliates, venture capital firms Northern Light and BioVeda China. The firm has a team of seven advisors based in its Beijing and Shanghai offices and a five-person investment team in Menlo Park, California.

In India, NEA makes mid to late stage investments. It also invests indirectly in the country through NEA-IndoUS, a venture capital firm focused on technology and technology-enabled services. The firm has seven members of its team based in offices in Mumbai and Bangalore.

In the US, NEA has offices in Washington DC, Menlo Park and New York. The firm manages a total of $13 billion in committed capital and has completed more than 290 acquisitions.