CRV, a greater than 50-year-old enterprise agency, is returning to traders $275 million from its $500 million Select fund, which backs later-stage rounds of present portfolio corporations, the New York Times reported.
The agency is likely one of the first Silicon Valley outfits to return dedicated capital to traders. (We reported yesterday that India’s largest enterprise investor, Peak XV, is slashing the scale of a handful of funds.)
CRV companions mentioned it realized that investing in follow-on rounds of a lot of its corporations would decrease its total returns.
The agency raised the Select fund together with a $1 billion fund for early-stage startups in 2022. CRV mentioned its subsequent early-stage fund might be smaller and it doesn’t plan to lift one other Select fund.
This isn’t the primary time CRV has decreased its fund measurement. In 2002, after the dot-com bubble burst, it lower a fund from $1.2 billion to $450 million. Other corporations to slash their fund sizes in that period included Kleiner Perkins, Accel, and Redpoint Ventures.
