IVP’s New Fund Shows Growth Investors Are Ready to Get Off Sidelines

The market for investing in mature startups has been in the dumps for the last year, as higher interest rates curb these startups’ growth. But plans by one of Silicon Valley’s oldest growth-stage VC firms to raise a new fund suggest such investors are ready to get back to work.

IVP, a 43-year-old venture capital firm that’s backed Coinbase and Twitter and usually focuses on Series B deals or later, plans to raise $1.3 billion to $1.5 billion for its eighteenth fund, according to a document prepared by a New Jersey state pension fund that recently weighed making an investment in the firm. 

That’s slightly smaller than its last fund of $1.8 billion, raised in 2021. Still, it’s a healthy sign for revenue-generating startups that need money to expand. IVP is likely to reach its fund target despite a pullback in VC fundraising given its long track record—and healthy cash distributions to its investors on two recent funds.