As reported by Ann Azevedo on TechCrunch, Bessemer Ventures Partners announced two new fundings totaling $3.3 billion. [Venture 3.3B]
Key Takeaways:
- Bessemer Ventures Partners announced two new fundings totaling $3.3 billion to invest in startups and existing companies
- Bessemer has a history of investing in successful companies like PagerDuty, DocuSign, LinkedIn, Shopify, and Twitch
- The firm has hired new people, including Jeff Blackburn, who previously worked for Amazon
- Bessemer’s new funds come at a time when many investment firms and startups are finding backers, and the firm aims to make perceptive bets on the future of tech
As tech companies are taking over the global economies, investors and backers aren’t hesitating to put more money into their further growth. Once startups, these tech companies are now attracting money from VC firms.
Bessemer Ventures Partners, another VC firm, has received over $3.3 billion of funding for investments. On February 25th, 2021, the VC firm announced two new fundings and was proud to disclose the amount received, that is, $3.3 billion.
The venture capital firm says it will use the money to invest in startups, specifically those in the early stages. Other than that, the money will also be used to invest in existing companies already showing success. [Venture 3.3B]
A company based in Redwood City has successfully raised a lot of money from investors. They raised $2.475 billion for their BVP XI fund, which will focus on helping new companies in areas like technology, healthcare, and consumer products.
They also raised $825 million for their Century II fund, which will invest in companies that are already growing and have a lot of potential for success in the future. This fund will invest in companies they already support, as well as new ones.
Bessemer isn’t a new company at all. It was founded more than 100 years ago, and the company didn’t enter the VC business until late 1965. Since its transformation into a venture business, the company has made investments in PagerDuty, DocuSign, LinkedIn, and Shippo. Their investment portfolio also includes Shopify and Twitch.
2020 has been tremendous both for investment firms and startups finding backers. Even though the venture capital firm invests in existing companies, the focus has been on startups and companies in their initial stages.
The needs and preferences of consumers and businesses change over time, creating opportunities for new companies to emerge and offer products and services that cater to these changing needs. Some recent examples of such companies are Folx, GetAccept, StackPulse, DriveNets, Mambu, Electric, Sila Nano, and StuffThatWorks. [Venture 3.3B]
Stripe is a company that provides online payment processing services, and last year, it was identified as the top company in BVP’s cloud report. Although BVP does not currently invest in Stripe, some people are speculating that this may change in the future as Stripe is raising a large amount of money ($100 million) and could be an attractive investment opportunity.
The money is there to invest. What needs to be decided is that venture capital companies need to decide what new companies and startups are going to define the new trends in tech. Consequently, the investors with deep pockets are indirectly going to define the future of tech, or at least a significant influence over it.
“As venture capitalists, we pay too much attention to pattern recognition and matching when in reality, the biggest opportunities exist where those patterns break,” stated Bessemer Venture Partners upon receiving the funds.
“Our job is to make perceptive bets on the future, especially those that others will dismiss and ridicule. We are fundamental optimists and strong believers in the power of innovation; our life’s work is putting our reputation, time, and money to help entrepreneurs realize a different future. They’re the ones pioneering something entirely new and obscure – a technology, a business model, a category,” the statement reads.
Bessemer got more money and hired five new people, including Jeff Blackburn, who worked for Amazon for over 20 years. Blackburn was in charge of Amazon’s investments and purchases in many areas, such as online shopping, advertising, and Amazon’s web services. [Venture 3.3B]
Bessemer now has 21 partners and more than 45 team members in different parts of the world. They allow each partner to make their own decisions, so entrepreneurs can work with someone who understands their business and can make quick decisions. However, there are many other companies that also invest in businesses and have raised billions of dollars, like TCV and Andreessen Horowitz.
Insight (investment portfolio: Twitter and Shopify) said in April 2020 that it had raised $9.5 billion to help smaller startups grow. Bessemer Venture Partners, on the other hand, has raised its largest fund ever with $3.3 billion to invest in new companies.
Bessemer has been around for over 110 years and has raised over $1 billion for the fifth time in a row. Although Bessemer has been around for a long time, there are many new investors with a lot of money, such as SoftBank, and others with less money but a good reputation. It remains to be seen how Bessemer will fare against these new investors with its new funds.
