* New Redpoint IV fund targets Internet and clean tech
* Firms says it closed fundraising on schedule
By Alexei Oreskovic
SAN FRANCISCO, Feb 8 Redpoint Ventures said on
Monday it has raised $400 million for a new venture capital
fund aimed at fast-growing Internet services, including social
networking and mobile products, as well as clean technology
The Menlo Park, California firm's latest fundraising comes
on the heels of one of the worst years on record for the
venture capital industry and amid continuing challenges in the
initial public offering market.
But Redpoint Founding Partner Geoff Yang said the November
IPO of Fortinet Inc (FTNT.O), a company it had backed, and the
recent acquisitions of several of its portfolio companies, had
put the firm in a good position to tap investors for a new
Yang said the firm began talking to investors about a new
fund last fall and closed the funding round on schedule with
more demand from investors than it could accommodate.
"We were prepared for a much tougher environment based on
all the horror stories we had read and if you look at the macro
conditions," said Yang.
The new fund, dubbed Redpoint IV, will focus on early stage
companies involved in social networking, mobile computing,
cloud computing and clean technology.
Partners at Redpoint, which was a backer of News Corp's
(NWSA.O) MySpace, said that social networking and mobile
services designed for smartphones like Apple Inc's (AAPL.O)
iPhone are transforming industries from entertainment and
e-commerce to video games.
While acknowledging that the business models for many
social networking sites are not yet fully developed, they
stressed that many social media firms are already generating
Mark Andreessen, a board member at Facebook, the world's
No. 1 social networking site, said in July that the company was
on track to generate more than $500 million in annual revenue.
"I think maybe people would be surprised how real these
businesses are," said Yang.
In 2009, venture capitalists made $17.7 billion in
investments -- a 37 percent drop from the year before and the
lowest level since 1997, according to a report by
PricewaterhouseCoopers and the National Venture Capital
(Reporting by Alexei Oreskovic; Editing by Richard Chang)