Investing.com — Insight Partners, a venture capital and private equity firm based in New York, has successfully raised $12.5 billion for its 13th flagship fund, according to a Thuesday report by Bloomberg. The firm initially aimed to secure $20 billion, however, the final amount, although reduced, is still one of the largest in the industry committed to technology investments.
The fundraising process was challenging due to the current unfavorable conditions for venture capital firms, according to Deven Parekh, Managing Director at Insight Partners. This fundraise was reportedly the most difficult one Parekh has experienced during his tenure at the firm.
Insight Partners is renowned for its early investments in companies such as Shopify Inc (NYSE:SHOP). and Docusign Inc. The firm typically invests between $5 million and $500 million in global software companies. In December, it contributed to a $10 billion investment in software manufacturer Databricks Inc., which resulted in a valuation of $62 billion for the company.
According to Parekh, the firm’s limited partners expressed concerns about their exposure to the venture capital sector following a significant drop in the value of technology stocks in 2021. The firm acknowledged it couldn’t invest capital at the same pace as during the peak of the pandemic when interest rates were at zero. Parekh believes the current fund size is appropriate for the present market opportunities.
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