Menlo Ventures closes oversubscribed $250m opportunity fund

Visual of Menlo Ventures homepage. April 2016.

Silicon Valley investment firm Menlo Ventures has closed a $250 million opportunity fund. The fund, which is led by a group of managing directors that includes Venky Ganesan, Matt Murphy, Mark Siegel and Pravin Vazirani, is targeting growth-stage investments in what it calls the “venture-valley” funding gap, a financing challenge encountered by growth-stage ventures looking to scale.

Labelled the Menlo Special Opportunities Fund, it is the first opportunity fund for Menlo Venture and was raised in six weeks, with oversubscription by limited partners (LPs) leading the fund to exceed its original $200 million target. The fund will make Series B investments with mean investment quantum of between $20 million and $25 million and Series C investments of up to $50 million.

The early-stage growth companies that the fund is targeting may already have a product and generating revenue of between $2 to $3 million in quarterly revenue.

However, due to a funding gap they encounter liquidity problems and a funding gap that lead to them being unable to raise new funds and folding. Ganesan notes that other firms do not raise enough capital to fully capitalise on the market opportunities they encounter.

According to Menlo, the oversubscribed fund will target investments at the Series B and C stages, with investments including a deployment of capital across portfolio and non-portfolio companies. The aim of targeting investments in firms within the Menlo portfolio and beyond is to curate and vet the quality of their deals, as well as maintaining high selection standard.

Ganesan claims that a ‘venture valley’ has opened up from the Series B to C stages as venture capital (VC) and investment entities like hedge funds and private equity (PE) firms conduct seed investing and later stage investments.

Commenting on this Ganesan explained: “We don’t want companies getting lost in the venture valley. We think there is a gap in inflection point investing,”, noting that raising capital in Series B and C rounds were progressively more difficult.

Also Read: 

China is bankrolling the boom in startup fundraising

GGV Capital Closes $1.2 Billion in New Funds for Global Investment

Lightstone Ventures closes $50m Singapore-focussed fund. Temasek, EDBI among investors

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.