early stage venture

Venture capital firm CRV has successfully raised $750 million for its twentieth flagship fund, teh firm announced on Friday. This new fund is smaller than its previous $1 billion early-stage fund closed in the fall of 2022,which was accompanied by a $500 million Select fund for late-stage investments.

CRV’s decision not to raise a late-stage fund this time around follows its return of $275 million from its $500 million Select fund to investors last year. The firm cited concerns that follow-on funding rounds for mature startups could negatively impact its overall returns. Despite this shift, CRV reported that its limited partners were highly receptive to the smaller fund, wiht the entire $750 million being raised in just four weeks, exceeding demand by double the amount.

The new fund will target seed and Series A startups, with a strategic focus on companies operating in the consumer and developer tools (devtools) sectors. CRV has a notable track record, having led DoorDash’s seed financing and the series A rounds for companies such as Mercury and Vercel, a cloud platform for web developers that achieved a $3.25 billion valuation.

Since its inception in 1970,CRV has supported over 750 startups,with 80 of those companies eventually going public. Recent investments from the firm include CodeRabbit, an AI-powered code review startup, and Outtake, a company leveraging AI for cybersecurity solutions.