RRE Ventures raised $ 265 million for its latest fund.
The company was founded in 1994, and it is its seventh fund (eighth if you include a separate fund for the opportunity to make follow-up investments). Exits in recent years include Bitly (acquired by Spectrum Equity), Business Insider (acquired by Axel Springer) and TapCommerce (acquired by Twitter).
General Partner Raju Rishi said that RRE will continue to follow its current investment strategy. That means putting about 60% of his money into Series A investments, 5 to 10% into seed transactions and the rest into B or C towers.
It also means investing by making about half of its investments on the East Coast – mainly in New York, where RRE is based. Rishi suggested that with the growth of a highly virtualized technology community of developers around the world, New York has more sense for startups, thanks to the density of industries like media and fashion: "The question of the ecosystem has become: I am closest to my client? ""
RRE also invests beyond New York. In these cases, Rishi said that it's usually based on specific areas that the investment team has studied in depth. Currently, these sectors include medical informatics, space technology, blockchain, robotics, virtual reality and augmented reality. On the other hand, there are other sectors that RRE considers "a bit declining".
"A good example is, we made the initial investment in 3D printing – we were the original investors in MakerBot," Rishi said. "Now, we do not see a striking amount of innovation this space.This does not mean that we got down on our knees and that we did not invest in this project, but it 's not not something that we are actively looking at. "
<img class="aligncenter size-large wp-image-1661224" src="https://businessdigit.com/wp-content/uploads/2018/06/rre-ventures-new-york-raises-265-million-for-its-new-fund.jpg" alt=" Raju Rishi "width =" 680 "height =" 459 "/>
Maria Palma, vice president of business development, added that the company has also developed its platform strategy to support portfolio companies over the past two years.
"You can not choose a single platform strategy, but you can choose a platform strategy that your business can run in a unique way," she said.
For RRE, this means helping startups connect with larger companies for potential partnerships, and also work with the founders to better understand things like leadership and hiring. In some cases, she stated that the company did not have the "capabilities to provide this type of large-scale training", it focuses instead on "what we call community learning – really peer groups … in our businesses. more easily get answers to their questions. "
Rishi said that RRE had fairly consistent size funds (he raised a sixth fund of $ 280 million four years ago), because his "sweet spot is the As series", and raise a fund more important would mean investing in more advanced transactions.
"We usually target $ 250 million, and frankly, they always sneak up because of LPs who want to keep betting on us," he said.
And while the fundraising announcement does not occur today, RRE has already supported several start-ups with the new fund – Bend Financial (Health Savings Accounts), Gem (cryptocurrency), Hypr (decentralized authentication), Ladder (life insurance), Latch (smart locks) and TheWaveVR (VR experiences for music).