IVP says it has had 120 portfolio companies go public.
Venture firm IVP, which invests in startups such as Robinhood Markets Inc. and Discord Inc., said it has raised $1.8 billion for growth-stage deals.
The new IVP XVII fund tops the firm’s last $1.5 billion vehicle, bringing its total committed capital to $8.7 billion.
IVP has benefited from a wave of technology-related initial public offerings this year, with portfolio companies Coinbase Inc., UiPath Inc., Compass Inc. and Honest Co. going public. Founded in 1980, IVP, more formally known as Institutional Venture Partners, has invested in more than 400 companies, 120 of which have gone public.
Five more of its portfolio companies are expected to hold IPOs by the end of the summer, IVP said.
While the IPOs are boosting the Menlo Park, California-based firm’s returns, skyrocketing technology valuations have made new investments more expensive, said Tom Loverro, an IVP general partner. He said he still sees opportunities in the current environment, though.
“The prices have gone up, but you can still be more than compensated,” Loverro said. “I don’t expect valuations in terms of multiples to continue expanding at the rate we have.”
Those valuations could even decline, he said. “There are going to be entrepreneurs who will probably feel like they priced rounds ahead of where they should have,” Loverro said.
IVP is making more international investments than it had previously, including in Europe and Israel, Loverro said. The firm is also more enthusiastic about health-care startups, including portfolio companies such as Lyra Health Inc., he said.
One trend of late is that more public investors are writing checks before a company goes public.
That can be a great way for startups to raise additional funds and hold off on going public until it’s convenient, said Eric Liaw, a general partner who has been at IVP for the past decade.
On the other hand, Liaw said of the crowded investment landscape, “Sometimes those can be indications of market tops.”