Western Tech closes $500m fund

San Jose, California venture debt lender Western Technology Investment has launched its 11th fund, with the vehicle’s lower size echoing the state of the venture equity markets.

San Jose, California venture debt provider Western Technology Investment (WTI) has announced the close of its 11th fund on $500 million (€406 million).

According to WTI founder and investment partner Ron Swenson, fundraising went “smoothly,” having begun the first of this year and closed in the second quarter, though WTI decided not to make an announcement during the summer.

The new fund is slightly less than WTI’s previous fund, which was capped at $720 million. Swenson said the lower size “reflects the current [venture capital investing] environment. The venture capital equity dollars that are flowing out there have been reduced, and the fund size is a reflection of what the current demand out there is. Clearly, the right sizing of the venture equity business has an impact on debt as well.”

Founded in 1980, WTI has made more than $1.6 billion in commitments to more than 600 companies. The firm’s tenth fund had investments in companies that included Google, Juniper Network and IDEC Pharmaceuticals.