Technology Crossover Ventures to start raising new fund

[NEW YORK] Technology Crossover Ventures (TCV), a venture capital firm that has invested in companies including Netflix Inc, Facebook Inc, Spotify Ltd and Zillow Group Inc, is raising a new fund just 19 months after completing its previous one, a person with knowledge of the matter said.

TCV will seek to raise US$2.25 billion for late-stage venture investments, said the person, who asked not to be identified because the information is private. It expects to complete the fundraising in the first quarter of next year, and put a US$2.5 billion cap on the fund, according to the person.

A representative for TCV wasn't able to comment immediately.

Funding commitments by US venture capital firms fell to US$4.38 billion in the third quarter from US$6.5 billion in the year-earlier period, according to a report from the National Venture Capital Association and Thomson Reuters. That's the least since 2013, the report shows. Venture firms raised US$10.8 billion in the second quarter.

TCV, led by founding general partners Jay Hoag and Rick Kimball, is based in Palo Alto, California, New York and London, according to its website. It was founded in 1995 and has raised almost US$10 billion.

The firm completed its most recent fund, Technology Crossover Ventures VIII, in March 2014 with US$2.23 billion in commitments, according to a statement at the time.

Investors in that fund include the California State Teachers' Retirement System, known as Calstrs, the Los Angeles County Employees Retirement Association, Colorado Public Employees Retirement Association and Oregon Public Employees Retirement System, according to data compiled by Bloomberg.

Technology Crossover Ventures VII, which closed 2008 with US$3 billion in commitments, is fully invested and has a net internal rate of return of 21.7 per cent, with a 1.96 times multiple of invested capital, according to June 30 data from investor Oregon Public Employees Retirement System. That performance puts it in the top quartile compared to its peers.

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