Which Boston VCs Are Raising New Funds? General Catalyst, Kepha Partners, and More

8/8/11Follow @gthuang

Maybe the better question is who isn’t raising a new fund? Venture fundraising seems to be picking up around town after a bleak couple of years. At least for a few prominent VC firms.

We reported back in March that Bessemer, Greylock, and Summit Partners were on the fundraising trail, and now all of them have closed, or are closing, sizable new funds. So it’s no big surprise that a number of Boston-area venture firms are following in their footsteps. Word on the street is that everyone from Flagship Ventures to Sigma Partners has been out pounding the pavement—and having some success.

There is still a lot of talk about VC contraction, though. The consensus seems to be that the top-tier firms will stay strong (and maybe get bigger), and the micro-VCs will continue to attract investors for their small funds. It’s the mid-tier venture firms that are gradually shrinking and might not be able to raise new funds. We’ll be keeping an eye on that, especially around Boston, the birthplace of modern venture capital.

Here are a couple more local firms that are out raising money:

—Cambridge, MA-based General Catalyst Partners is talking to investors about raising a $750 million sixth fund, according to WSJ’s VentureWire. The report, based on unnamed prospective fund investors, says General Catalyst’s proposed new fund will include $500 million for early-stage companies and $250 million for growth-stage deals. That is slightly larger than the firm’s fifth fund, raised in 2007, which totaled $715 million (with a similar breakdown between early-stage and growth-stage). GC’s portfolio companies include Backupify, CyPhy Works, HubSpot, iWalk, Jumptap, Kayak, and Yottaa.

—Waltham, MA-based Kepha Partners has received a commitment of up to $15 million for its second fund from Massachusetts Pension Reserves Investment Management Board (Mass PRIM), as reported by VentureWire. Kepha has targeted a $100-110 million fund, similar in size to its first fund (raised in 2007-08), according to the report. Kepha’s portfolio includes Azuki Systems, Clovr Media, Goby, and OwnerIQ.

Gregory T. Huang is Xconomy's Deputy Editor, National IT Editor, and the Editor of Xconomy Boston. You can e-mail him at gthuang@xconomy.com or call him at 617-252-7323. Follow @gthuang

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