Spur, a fund of funds, targets $200M to wager on early-stage VC in a downturn – TechCrunch

Spur Capital Companions, an investor in enterprise capital funds, is out to lift $200 million for its seventh core fund. So far, it has secured almost $74 million to wager on early-stage VCs, per a securities submitting.

Who or what’s Spur betting on, precisely? Through the years, the investor claims it has not directly backed dozens of high-flying tech and life science corporations on the early stage, together with hostelier Airbnb and weapons maker Anduril. However Spur didn’t reply when requested for the names of the VC corporations in its portfolio.

Spur has been elevating money for the fund for greater than a 12 months, and it’s already investing out of it, the Bartlesville, Oklahoma-based agency advised TechCrunch. To this point, at the least 40 unnamed traders have chipped in on the seventh fund, in accordance with the submitting. Spur says its restricted companions embrace pension plans and household places of work within the U.S. and Europe.

Spur has been round for roughly twenty years, however at $200 million, the agency’s seventh fund can be amongst its largest ever. The investor has greater than $1.2 billion in property underneath administration, in accordance with Pitchbook.

Betting on VCs in a downturn

The economic system stinks and tech is aware of it. Reactionary startups are shedding employees, and even giants like Google are sending out fewer provides and wringing no matter they’ll out of their present workforces. With the way in which issues are going, you may assume enterprise capital is feeling the warmth, and to that time, VCs are chopping again on offers in some — however not all — instances. But, it’s not as a result of they’re out of cash.

In actuality, U.S. VCs have more money to spare than ever, however rising rates of interest, Russia’s invasion of Ukraine and different components have renewed cravings for profitability, at the least at later levels.

On the alternative finish, the development is driving extra funds of funds that again early-stage enterprise corporations. Even in perpetually unsure occasions, traders nonetheless don’t need to miss out on no matter the subsequent large factor is perhaps.

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