Feb 27 (Reuters) - Venture capital firm Spark Capital raised $450 million for its fourth fund, making it the largest round for the Boston-based company.
Spark, which has invested in consumer Internet companies like Twitter, Tumblr, and Foursquare, will tap this fund to expand into other sectors like financial services, healthcare and education.
“Our initial focus was on digital media - it’s still a focus of ours,” said Spark founder and general partner Todd Dagres. “In media, a lot has been accomplished. When it comes to those other industries, it’s the second and third inning.”
Prior to this fund, the 8-year-old firm raised $360 million. Dagres said the latest round was oversubscribed.
”Today I wouldn’t want to start a social media company,“ Dagres said. ”There is a lot of activity in the area, a lot of seed programs belching out these young companies because the barriers of entry are so low.
“The barriers of entry to financial, health and education companies are much harder.”