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While fund sizes of many venture capital firms have balloon into billion of dollars over the last decade , Benchmark Partners , one of Silicon Valley ’s most successful investor , has stick around to raising approximately $ 425 million in Das Kapital every few old age .
That ’s what the storeyed firm told in a letter to its limited partners when it announce its recent fund this summer , report The Information . However , Benchmark ’s cooperator are not limiting themselves to whatever capital loyalty they make for their main investment stock . The house is currentlyraising an additional $ 170 millionfor a fund call up Benchmark Partners Founders ’ Fund I , allot to two regulative filings .
Benchmark is n’t quiet call for its LPs to contribute more funding to a new strategy . TechCrunch understands that $ 170 million is expected to come primarily from the house ’s partners , past and present , with some availability for their friends and folk to join too . This is n’t new , a source familiar with the stock order . The partners - only fund has been a strategy from its early days .
While it is not unusual , and often a requirement , that mate contribute their personal capital alongside LPs into their main funds , it is more rare that a firm has a large separate investment trust composed almost wholly of partners ’ own money .
But Benchmark is not an average VC firm . It was an early investor in company like eBay , Snap , Uber , and Twitter , and has returned trillion to its angel over those age , often reproduce the original funds by as much as ten-fold , according to study fromForbesandThe Information .
So its partners have every reason to need to duplicate down on their investments . A separate stock allows them to do so in a way that does n’t take manage modified partner ’ money . They are n’t the only VCs to think like that . Homebrew , the VC firm founded by Satya Patel ( do it for his metre at Twitter , Battery Ventures , and Google ) and Hunter Walk ( YouTube , Google),quit take aim special mate money whole in 2022 . Homebrew ’s independent investment trust is now their own money . Sequoia ’s separate wealth direction firm , Sequoia Heritage , was alsofamously seededwith $ 150 million apiece from spouse Michael Moritz and Doug Leone , although it took on $ 250 million from outside investors , too .
Benchmark has always operate less like the gargantuan VC house . It is , for illustration , an adequate partnership business firm , which means each partner share an equal percentage of the outfit ’s direction fees and profits . The firm invests primarily in Series A - stage ship’s company for around 20 % ownership and is so sought after , its internet site is little more than a landing page .
