Bain Raises $600 Million For Its Largest Ever Venture Fund


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Dealbook reports that Bain Capital Ventures has raised $600 million for a new fund. Sources tell Dealbook that the fund, the firm’s largest to date, was “significantly oversubscribed, with new investors making up about 15 per cent of the fund.”

The fundraising round comes as venture capital firms throughout the industry have aggressively raised capital:

Over the last 12 months, several have raised funds, in excess of half a billion dollars. Andreessen Horowitz, the firm led by Netscape’s co-founder, Marc Andreessen, is said to be seeking $1.5 billion in new capital, two people with knowledge of the matter have said.

Accel, an early backer of Facebook, closed several funds last year, totaling more than $2 billion. Although less money is flowing into the broader venture capital industry, limited partners have doubled downed on some of the largest companies with the most recognisable brand names.

This recent flow of funds is not all positive for venture firms.

As with any investing space, when cash begins pouring in, high returns can be squeezed as a competition for a limited set of investment opportunities increases.