Amidst a 72% decline in funds raised by Israeli venture capital funds in 2009, Battery Ventures announced the completion of its new fund, BV-9, totaling $750 million. This is one of the largest funds raised in the first quarter of 2010 as VC funds struggle to raise money due to poor performance and low liquidity.
It helped that Battery proactively offered some investor-friendly terms. The firm lowered its carried interest fee–the fee that it takes on profits made in the fund–to 20% from 25% previously, though the fee would rise to 30% after the fund returns three times its capital, said Mr. Crotty. In addition, Battery’s partners showed their commitment by putting more money into the fund themselves than in its past funds, among other moves, he said.
The current fund brings Battery’s assets under management to approximately $4 billion. Battery plans to keep the same investment strategy implemented since the fund’s inception in 1983, backing talented entrepreneurs and businesses with high potential that spread out across three dimensions:
- Domain expertise: The main investment areas are Internet and digital media, financial services and information, Communications services, semiconductor technology, Enterprise IT, green technology and software.
- Maturity: Battery invests in companies at all stages – from seed to later stage private equity buyouts.
- Geography: The Company invests throughout the world, with most investments are made in North America, Europe, Israel and India.
The Israeli office of Battery Ventures includes: Scott Tobin, Itzik Parnafes, Avi Domoshevizki, Eyal Shinar and David Sokolic. The Israeli office most recently invested in Pursway (see previous coverage).