Greycroft Partners Growth Fund Ends With Over $200M to Invest With.
A leading venture capital firm that specializes in Internet and mobile companies, Greycroft Partners, announced today the closing of its latest fund, Greycroft Growth. Greycroft Growth was substantially oversubscribed, but held to the original capped amount of $200 million.
“Greycroft Growth is part of a natural evolution for the firm to service our portfolio companies that have broken through and demonstrated a strong growth trajectory,” said Ian Sigalow, Partner and Co-Founder of Greycroft Partners. “The new fund also gives us the opportunity to invest in companies that we had followed previously, but could not invest in because of their larger size and later stage.”
Strategically placed in New York and Los Angeles, Greycroft has a strong network in the two largest cities in the United States. This benefits Greycroft companies by providing them privileged access to the largest media companies, retailers, brands, agencies, and financial institutions in the world.
Greycroft looks for cutting-edge innovation on a global basis, and approximately 90% of Greycroft’s companies are headquartered outside of Silicon Valley. In addition to its core markets, the firm has recently invested in companies based in Beijing, Reykjavik, Indianapolis, London, Minneapolis, Tokyo and Austin. Greycroft currently has 83 active portfolio companies that are headquartered in 36 cities and nine countries, employing over 5,000 people worldwide.
Since its founding in 2006, Greycroft has had numerous successes:
- Greycroft I ($75 million, 2006 vintage fund) has returned more than 150% of committed capital to Limited Partners. According to the Cambridge Associates Index, it is the top performing venture fund of its vintage year. Notable exits include:
- Buddy Media, based in New York, which sold to Salesforce for $800 million in 2012
- M5 Networks, based in New York, which sold to Shoretel for $160 million in 2012
- Huffington Post, based in New York and Los Angeles, which sold to AOL for $315 million in 2011
- Greycroft II ($131 million, 2010 vintage fund) is also one of the top performing funds of its vintage year, according to the Cambridge Associates Index. Notable exits include:
- Maker Studios, based in Los Angeles, which sold to Disney for up to $950 million
- Klout, based in San Francisco, which sold to Lithium for $200 million in 2014
- Braintree, based in Chicago, which sold to PayPal for $800 million in 2013
- AwesomenessTV, based in Los Angeles, which sold to Dreamworks for up to $150 million
- Greycroft III ($175 million, 2013 vintage fund) is early but has made 12 core investments, three of which have already received follow on rounds at substantially higher valuations.
“We observed a trend when we started Greycroft in 2006 that innovation was no longer limited to a select few markets,” remarked Dana Settle, Co-Founder and Partner of Greycroft Partners. “Many of our biggest successes to date have been in markets outside of Silicon Valley and our first investment from Greycroft Growth is in AppAnnie which is based in Beijing.”
General Partners Alan Patricof, Dana Settle, and Ian Sigalow will be leading Greycroft Growth along with last year’s new Partner additions, Mark Terbeek and John Elton. Venture Partners Bo Peabody and Paul Bricault will also support the fund.
“We also anticipate hiring new investment professionals, specifically dedicated to the growth fund,” said Alan Patricof, Partner and Co-Founder of Greycroft Partners. “We are expanding the team to continue providing our companies with business development and recruiting across all stages of investment and in all markets around the world.”