Bain Capital Ventures, the venture arm of the namesake private equity giant, has raised $1.9 billion across two new venture funds targeting startups of all sizes.
(Bloomberg) — Bain Capital Ventures, the venture arm of the namesake private equity giant, has raised $1.9 billion across two new venture funds targeting startups of all sizes.
The funds, which set a new record for Bain Capital’s 20-year-old venture capital business, will target investments in fintech, infrastructure, apps and commerce technology, BCV said in a statement Tuesday. The raise eclipses the $1.3 billion BCV announced in May 2021 to invest in earlier-stage companies.
The firm also launched a $560 million fund last year, exclusively targeting crypto-related companies.
“Entrepreneurs want to build alongside investors who’ve done so successfully, and our team of operators, builders and experienced investors delivers on that promise,” BCV Partner Enrique Salem said in a statement.
The funding size is notable in an industry that pulled back in 2022. Venture capital investments dropped globally last year, and VCs showed more caution amid public market turmoil.
Bain’s new funds were over-subscribed and will invest in companies of all stages from seed to growth, BCV said. The venture group has also been adding to its investment teams and bringing in talent from other firms, the company said.
The group will focus in particular on startups that serve other businesses rather than consumer-facing technology, BCV partner Matt Harris said in an interview with Bloomberg Television on Tuesday.
Harris also said that there was momentum in the tech industry, despite the current market downturn. “I think technology is moving very quickly,” Harris said. “What we found is that investors are still very interested, and this may be, in fact, a buying opportunity.”
He said that while about 70% of the firm’s investments have been in the US, BCV was increasingly interested in Europe and the UK. Harris added that investors will monitor opportunities in generative artificial intelligence, an area in vogue for technology executives and investors. The partner described recent AI tools as “strikingly useful” and emphasized the firm’s investments in AI over the last decade.
“I have no doubt things will get overheated in AI and there will be articles in nine months about the letdown and unfilled promise,” Harris said, “but we think the promise quite durable as it relates to AI.”
–With assistance from Caroline Hyde.
(Adds executive comments starting in the seventh paragraph.)
More stories like this are available on bloomberg.com
©2023 Bloomberg L.P.