Menlo Park, California-based Redpoint Ventures recently closed its fourth venture capital fund, Redpoint Omega, on $250 million (€190 million). The fund is meant to supply additional capital to a $400 million fund closed last year.
Redpoint Omega differs in name, size and investment strategy compared to the firm’s previous funds. Rather than focus on early stage or Series A technology companies like the larger namesake funds it has raised, the new fund will invest in more mature companies that allow for the firm to take an active role, Redpoint confirmed.
Redpoint’s existing portfolio already contains several such mature companies, like its PIPE investment in Intermix Media, a network of 30 websites including MySpace. Intermix was famously sold in 2005 to Rupert Murdoch’s News Corp. for $580 million.
The smallest fund ever raised by the VC firm, Redpoint Omega will typically invest anywhere from $8 million to $25 million in approximately 15 to 20 companies. The investments could include bootstrap companies, roll ups, or PIPES, and will focus on industries in which Redpoint is already active, such as broadband infrastructure, interactive media and mobile platforms.
Redpoint closed its third fund last year on $400 million; its second fund closed on $1.25 billion in August 2000, though the firm later returned $500 million to its limited partners. Redpoint’s $600 million debut fund had a negative 17 percent internal rate of return as of 30 September 2006, according to one of its limited partners, the University of California endowment.
Redpoint – which has offices in Silicon Valley, Los Angeles and Shanghai – was founded in 1999 with partners from Brentwood Venture Capital and Institutional Venture Partners. It has more than $2 billion under management, which includes 34 initial public offerings and 54 upside acquisitions.