Palo Alto, California-based venture capital firm Technology Crossover Ventures has closed its fifth fund, TCV V, on $900 million (€714million).
TCV began fundraising in September with an original goal of $800 million. Though the newest fund was oversubscribed, it was nearly half the size of the firm’s previous fund, TCV IV, which raised $1.7 billion in April 2000.
TCV will use the fund for expansion and late-stage investing in software, communications, infrastructure, services and semiconductor companies. TCV will make capital commitments of between $10 million and $50 million in between 25 and 35 companies over the next three to four years. The firm plans to make its first investment in the first half of 2004.
“TCV’s focus on expansion and other late-stage companies requires such a large fund to carry out its ‘crossover’ investment strategy,” said TCV general partner John Drew. “We invest not only in late-stage and expansion-stage private firms, but also in those same firms at their IPO and when they’re public. We plan to use this fund to continue executing against our core strategy.”
Founded in 1995, Technology Crossover Ventures currently manages $3.3 billion in capital. The firm has invested in more than 140 companies and has floated 35 companies and made 23 strategic sales or mergers. Last July, TCV committed $56 million in funding to wireless voice and data communications software company InPhonic. The firm has also contributed to funding rounds for travel service Web site Expedia and DVD mail-rental company Netflix.